Cybercrime Network – Gal Barak’s Fellow Shareholders Distance Themselves From Wrongdoings

Two of the principals of a global cybercrime organization, Gal Barak and his partner Uwe Lenhoff, were arrested in January/February 2019 as part of an international enforcement action by the authorities of Germany, Austria, and Bulgaria. Uwe Lenhoff is currently in custody in Austria and awaits prosecution. They are charged with fraud, money laundering and building of a criminal organization by ripping off thousands of European retail investors. There are 8 additional suspects (including Joachim Kalcher, an Austrian citizen). Barak was first arrested in Sofia but then released into house arrest for health reasons. The Austrian authorities had requested his extradition.

Shalon And Smirnov

FinTelegram has communicated with the network’s other two principals, the Russian Vladislav “Vlad” Smirnov and the Israeli Gery “Gabi” Shalon. The latter currently awaits trial in the U.S. for charges of money laundering, securities fraud, and other cybercrimes. Shalon has been released from prison until the trial upon payment of $403 million in a not yet unsealed plea agreement.

In the course of a written communication (available to us), the two have distanced themselves from any illegal activities of Gal Barak: He would have always confirmed to them that business was being conducted properly and in compliance with regulation and law. They would have assumed, for example, that the clients’ funds would be kept in segregated accounts. Gal Barak would have assured them that the corresponding compliance guidelines would be complied with. If that is not the case, then he would have to answer for it alone.

Fellow Shareholders

This is a rather surprising development, as Gery Shalon and Vladislav Smirnov were considered close business partners and friends. The shares of Global FinTech Solutions Ltd in the British Virgin Islands, which is at the center of the investigation, is held by these four parties (Smirnov, Shalon, Lenhoff, Barak). OldyPak Capital Ltd of Smirnov and Shalon holds 46% of the shares in this company, which in turn owns 100% of Tradologic Solutions Ltd which developed the trading software. Gal Barak is the managing director of both companies. Who’s apparently left alone now.