Illegal Broker Scheme 4XFX Closed Upon FinTelegram Action – Rapid BO Refunded To Clients!

In its researches on illegal broker schemes, Fintelegram has put a special focus on the involved payment services providers (PSP). In most cases, the clients’ money can be followed to the ultimate perpetrators via those PSPs. In cooperation with the South African Rapid PO Pty Ltd, we have identified the perpetrators and bank details of the 4XFX scheme:

• 4XFX was a successor of the illegal and closed platforms of Gal Barak and his E&G Bulgaria;
• The operator of the 4XFX was GRF Europe OU, registered in Estonia;
• Managing Director and ultimate beneficial owner of GRF Europe OU is Oliver Hemmer (43);
• whereby the South African Rapid BO Pty Ltd acted as so-called Business Introducer (BI) and PSP;
• One bank account of GRF Europe OU is with Idea Bank S.A. in Bucharest, Romania;

4XFX Warnings, Backgrounds, And The Fraud Triangle

Even though 4XFX is just a few weeks old, it already received several warnings from financial supervisory authorities such as the UK FCA, the Spanish CNMV or the Estonian Finantsinspektsioon. Pretty impressive negative track record, isn’t it?

According to the available information, the 4XFX has been launched as a successor to the fraudulent XTraderFX scheme of Gal Barak and his E&G Bulgaria. FinTelegram reported on this in early March 2019. After Gal Barak’s arrest, XTraderFX customers were contacted in February 2019 and asked to switch to the 4XFX platform.

This means that

1. either the customer data from XTraderFX (and/or the other platforms of Gal Barak and E&G Bulgaria) was sold and/or leased or
2. the 4XFX platform was directly operated by a new Estonian shell company of E&G Bulgaria and its boiler rooms or
3. most likely it was a combination of (a) leasing the client data to a new provider against a commission and (b) offering also the E&G Bulgaria boiler room services for a fee.

In addition to the Estonian GRF Europe OU as the operator of the new scheme, Rock Intl Ltd and then Bock Intl Ltd on the Marshall Islands were also listed as owners. The usual procedure for those perpetrator. Let’s call it the “Fraud Triangle” between Bulgaria, Estonia, and the Marshall Islands

GRF Europe OU and Oliver Hemmer

GRF Europe OÜ signed an agreement with South African Rapid BO Pty Ltd on February 19, 2019. FinTelegram has reported about it and contacted Rapid PO. GRF Europe mandated Rapid BO to be a so-called business introducer and a payment services provider (PSP) for them. Within the scope of the agreement Rapid BO

• provided marketing services to 4XFX (i.e. looked for victims),
• acted as beneficiary (payee) for 4XFX clients (traders), and
• received 6% fee from client funds paid in.

Upon publishing of FinTelegram’s article on 4XFX Rapid BO purported to be appalled by the activities of its customer GRF Europe and immediately terminated the partnership (download here). Furthermore, the company delivered the necessary data for further investigations and funds recovery purposes with the EFRI campaigns.

Shortly after the termination of the partnership with Rapid BO, the 4XFX website was also closed.

The managing director and ultimate beneficial owner of GRF Europe OÜ is a certainOliver Hemmer from Liechtenstein.

This Oliver Hemmer apparently also has the authority to sign GFR Europe’s bank account held with the Romanian Idea Bank S.A. and has also signed the agreement with Rapid PO. He lives in the Haldenstrasse in Gamprin-Bendern in Liechtenstein. We have got all the respective documents to support our report.

Thank You For Cooperation Rapid BO

We would like to express our thanks to the people of Rapid BO for their constructive cooperation. You did the right thing this time, guys! Thanks to our joint efforts, we have been able to shut down an illegal and fraudulent brokerage platform again, uncover the ultimate perpetrators and discover bank accounts.

FinTelegram agreed with Rapid BO the refunding of the remaining funds to the clients of 4XFX. In a joint effort with Rapid BO, EFRI and their lawyers, the fund recovery process will be continued with the 4XFX perpetrators and the related Gal Barak schemes.

Report Illegal Broker And PSPs

If you are aware of illegal broker schemes and/or payment services provider (PSP) we would ask you to share your information with our FinTelegram Research Team. Together we can make an impact for investor protection. Please use our whistleblower system to share your information.