At the end of last year, FinTelegram set up the European Funds Recovery Initiative (EFRI) together with the auditor Elfriede Sixt, other partners and with the support of authorities. EFRI’s goal is to help the victims of the many broker scams recover stolen funds and assist the authorities in their respective investigations. Several hundred victims have already granted EFRI Power of Attorney (POA) to represent them and their claims. EFRI plans to take action against the scammers and their co-conspirators, and partners in their rackets. In particular, the payment service providers (PSP) who have acted as facilitators to these scams will have to pay compensation for the investors’ losses. Also the operators of the Boiler Rooms (Call Center) and their responsible persons.
The Israeli Scam Export
Since the introduction of binary options some 10 years ago, Israel has developed a downright scam broker industry that has betrayed retail investors around the world for tens of billions of dollars. Simona Weinglass from the Times of Israel called this scammer the Wolves of Tel-Aviv and put it on international display for the first time in 2016. The U.S. FBI has estimated that the Israeli fraud industry around the Binary Options has stolen more than $10 billion annually from retail investors around the world.
Since 2014 these Israeli scammers have exported the broker scams to Europe.
- GreyMountain Management (GMM): David Cartu, Jonathan Cartu, Uri Katz, and the people from Wirecard established the vast GreyMountain Management (GMM) scam scheme in Ireland in 2014.
- Gal Barak, Tradologic and E&G Bulgaria: Starting in 2016, Gal Barak has established its boiler room operator E&G Bulgaria and the related scam schemes OptionStarsGlobal, SafeMarkets, XTraderFX or CryptoPoint in Bulgaria and the Balkans.
- Payobin, Moneta International and Hermes Solution: Eyal Nachum and Tamir Zoltovski have established their illegal payment services with Hermes Solution DOO in Montenegro. We know from lawyers in Serbia that hundreds of Israelis in Belgrade work in boiler rooms (mostly without work permits) and regularly commute between Tel-
A viv and Belgrade. Moreover, Nachum and Zoltovski founded the licensed Moneta International UAB in Lithuania and supported GMM’s scams.
The export of broker scams has damaged tens of thousands of retail investors throughout Europe and North America. It is only since 2018 that the authorities in Europe have taken serious action against this global cybercrime industry. The Israeli authorities have so far not cooperated, i.e. not taken any responsibility for the illegal actions of their citizens and have left the initiative to the U.S. authorities. Here we would like to refer to the Yukom Case and Lee Elbaz‘s indictment.
The Israeli Fortress Falls
In recent weeks, more and more lawyers have contacted FinTelegram and EFRI. These attorneys represent victims in various jurisdictions. The reports on FinTelegram have assisted them in asserting their claims, they say.
Israeli lawyers are also increasingly approaching FinTelegram and EFRI and either requesting assistance with further information or offering their services. These Israeli lawyers have a very clear and realistic picture of the scam broker industry in their country. The reports by Simona Weinglass and the FinTelegram, as well as the awareness they have raised, motivate these lawyers to take legal action against Israeli scammers in Israel as well. They’re ashamed of their countrymen. This is good news.
EFRI focus on Israel
The EFRI initiative, together with the Israeli lawyers, will therefore focus on Israel in the coming weeks. Together with the Israeli legal experts, the most effective measures will be considered to hold the scammers behind the hundreds of broker scams accountable and get the money back for the cheated retail investors.
This approach is in the interest of small investors worldwide who have been harmed by Israeli scammers. So far, these scammers have felt safe in Israel. This must be over. Only if these scammers are also held legally responsible in their home country will this fraud come to an end.
