Background: Law Enforcement Strikes Against Cybercrime Duo
In early 2019, Gal Barak, an Israeli national, and his German partner Uwe Lenhoff were taken into custody during a coordinated cross-border police operation. Both are under investigation by numerous EU law enforcement agencies for their alleged roles in a sophisticated cybercrime network accused of defrauding thousands of European investors out of hundreds of millions of euros through online brokerage scams. Now, Austrian prosecutors have filed the first formal indictment.
Operators Behind E&G Bulgaria and Massive Scam Brands
Gal Barak and his wife Marina Barak (née Marina Andreeva) ran operations under the corporate name E&G Bulgaria (formerly E&G Finance), headquartered in Sofia. Collaborating with an Israeli circle—Amit Hulin, Kfir Levy, Jesse Tally, and Itzik Gellet—the group managed several fraudulent trading websites:
Fraudulent Brands Operated by E&G Bulgaria:
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XTraderFX
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SafeMarkets
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Golden Markets
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CryptoPoint
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OptionStars
These platforms were used to lure investors across Europe under the pretense of trading binary options, cryptocurrencies, and CFDs.
Boiler Room Operations and Investor Deception
The scheme relied heavily on boiler room call centers located in:
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Bulgaria
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Serbia
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Bosnia and Herzegovina
Agents employed aggressive tactics to manipulate retail clients into transferring money. Contrary to the platforms’ claims, no actual trading took place. Instead, client funds were siphoned off to support the criminal network’s growth, fund luxury lifestyles, and invest in real estate.
Scale of the Damage (as per court filings):
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Category |
Estimate |
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Number of victims |
Over 25,000 |
|
Estimated losses |
€150+ million |
Legal Proceedings and What’s Next
The Austrian prosecution has brought its first case against both Gal Barak and Marina Barak. The trial is expected to begin in the upcoming summer. However, this is believed to be just the start—multiple legal actions are anticipated across other EU countries.
Meanwhile, in Germany, Barak’s co-conspirator Uwe Lenhoff remains in pre-trial detention, facing similar charges along with about a dozen other defendants.
Lenhoff, B90 Holdings, and Financial Deception
Lenhoff, together with his associates and Dutch accountant Marcel Noordeloos, founded the now-public B90 Holdings PLC (formerly Veltyco Group PLC), listed on the London Stock Exchange’s AIM.
Former colleagues allege that Lenhoff deceived them and funneled company resources for personal gain, defrauding them of millions.
Stay informed as this sprawling case unfolds across Europe. For more updates, follow the ongoing #ViennaCybercrimeTrials and related indictments.