In Saarbrücken, Germany, legal proceedings have begun against individuals implicated in the Veltyco Cybercrime Scheme. The alleged orchestrator, Uwe Lenhoff, passed away in custody in July 2020 under unclear circumstances. Despite his death, several associates are now facing trial, accused of defrauding over 1,100 German investors of nearly €42 million. The initial defendant is 29-year-old Kosovan, Azem Spahiu, who, along with his associate Betim Tasholli, reportedly managed boiler rooms for the operation in Kosovo.
Scheme Operations and Investor Deception
Between May 2016 and early 2019, agents within these boiler rooms allegedly lured investors with promises of substantial returns through binary options platforms, including Option888, XMarkets, and ZoomTrader. However, prosecutors contend that no actual trading occurred; instead, investor funds were misappropriated by the perpetrators. Prosecutor Victoria Haenel emphasized that investors fell victim to a large-scale fraud, with some individuals losing up to €5.5 million.
Legal Proceedings and Defendant Status
In this initial phase, three key figures from the Veltyco scheme face charges:
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Azem Spahiu: Currently in court, his defense has indicated a potential guilty plea and willingness to testify.
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Betim Tasholli: Also charged but presently unavailable for court proceedings.
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Third Suspect: Unnamed and currently not present for the trial.
While this trial focuses on the losses of approximately 1,100 Austrian and German victims, the global impact of the Veltyco Cybercrime Scheme is far-reaching, with over 200,000 victims worldwide and estimated damages of $122 million.
Payvision’s Involvement
Investigations have revealed that a significant portion of the defrauded funds were laundered through the Dutch payment processor, Payvision. Rudolf Booker, Payvision’s founder and former CEO, maintained a close business relationship with Uwe Lenhoff, even appointing him as a distributor to acquire additional fraudulent merchants for Payvision. These illicit transactions contributed to Payvision’s valuation of €360 million during its acquisition by ING. The extent of Payvision and Booker’s involvement remains under scrutiny as the trial progresses.
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