Overview: EFRI’s Progress Since January 2019 In January 2019, following the arrest of Uwe Lenhoff, founder of Option888, the European Funds Recovery Initiative (EFRI) launched its first campaign. This was soon followed by a campaign in February targeting fund recovery from XTraderFX and SafeMarkets after Gal Barak’s arrest. Subsequent campaigns addressed scams involving Blue Trading, AlgoTechs/BeAlgo, StoxMarket, and KayaFX. Over the past five months, more than 800 individuals have registered with these EFRI campaigns. Impact: Dismantling Fraudulent Broker Networks EFRI’s efforts have been instrumental in shutting down major broker scams such as Option888, XTraderFX, and SafeMarkets. These cases are currently…
Author: Tom
The Unlikely Connection: News Media, Payment Processing, and Broker Scams What do Crypto Daily Pte Ltd, Veltyco Group PLC, Uwe Lenhoff, and TradoVest have in common? At first glance, it may seem like a legitimate crypto news site and an international financial group have little to do with fraudulent online trading platforms. However, closer scrutiny reveals a disturbing link between these entities and a series of large-scale investment scams. Key Questions That Demand Answers Despite multiple warnings and regulatory scrutiny, Crypto Daily Pte Ltd, based in Singapore, has continued to receive victim payments for fraudulent broker schemes like TradoVest and…
Overview: Expanding Web of Broker Scams and Money Laundering The fraudulent operations orchestrated by German national Uwe Lenhoff and his Veltyco Group PLC have unveiled a complex international network of scams and money laundering. In 2016, Lenhoff estimated his controlled cash flow at approximately $3 billion annually. Veltyco, a publicly listed company, played a pivotal role in laundering funds obtained from fraudulent broker platforms such as Option888, TradoVest, and XMarkets by disguising them as marketing revenues. Key Figures and Entities Involved Name Role/Association Uwe Lenhoff Founder of Veltyco Group PLC; central figure in orchestrating broker scams Falk Preussner Major shareholder…
Introduction The arrest of Uwe Lenhoff, a self-proclaimed online gambling pioneer, has brought to light the complexities surrounding the use of illicit funds for legal defense. Lenhoff’s assets, amassed through fraudulent online platforms, raise significant concerns about money laundering and the ethical responsibilities of defense attorneys. Tainted Assets and Fraudulent Operations Lenhoff’s wealth, including luxury vehicles and extensive real estate holdings, was primarily derived from fraudulent online trading platforms such as Option888, XMarkets, and TradoVest. These platforms deceived retail investors, leading to substantial financial losses. Despite warnings from financial authorities, Lenhoff continued his operations until his extradition to Germany in…
Intensifying the Battle Against Cybercrime The summer has not only brought record-breaking temperatures but also a surge in efforts to combat cyber scams and cybercrime. In recent years, cybercriminals have operated with relative impunity, undermining trust in digital financial markets. This trend must be reversed. In the United States, a significant precedent was established in the fight against cyber scams with the conviction of former Yukom CEO Lee Elbaz. Elbaz was held accountable for managing boiler rooms behind various broker scams. U.S. prosecutors detailed the mechanics of investment fraud via broker scams and boiler rooms during the trial. Prior to…
Extradition Proceedings Against Gal Barak Move Forward Gal Barak, an Israeli national residing in Bulgaria, is facing extradition to Austria over his alleged role as the operator of several high-profile broker scams. In early 2019, following extensive investigations, Austrian authorities issued an EU arrest warrant for Barak, who is accused of leading fraudulent operations through brands such as: XTraderFX SafeMarkets OptionStarsGlobal Golden Markets Operating through E&G Bulgaria EOOD, Barak allegedly managed a network of illegal boiler rooms in Bulgaria, Serbia, Bosnia-Herzegovina, and Georgia. Statements from insiders and investigative findings suggest that over €200 million was siphoned from tens of thousands…
Background: Yukom Communications and Global Investor Losses U.S. authorities have attributed more than $140 million in damages to the Yukom Communications binary options fraud scheme, which targeted tens of thousands of investors globally. At the center of this network were Yossi Herzog and Kobi Cohen, identified as the beneficial owners behind the scam. Their extravagant lifestyles, funded by stolen funds, have come under intense scrutiny. Legal Consequences Already in Motion The CEO of Yukom, Israeli national Lee Elbaz, has been convicted by a U.S. jury for her role in the fraud. In addition to her conviction: Five Yukom employees have…
Widening Scandal: From Austria to Bulgaria The investigation into Gal Barak, the Israeli national accused of orchestrating extensive broker scams across Europe, continues to escalate. Together with his wife, Marina Barak (formerly Marina Andreeva), Barak is alleged to have misappropriated millions of euros from retail investors. His business associate, Uwe Lenhoff, was arrested in early 2019 and remains in custody in Germany. Meanwhile, Barak is fighting extradition from Sofia, Bulgaria, where he resides and has reportedly invested heavily in real estate using illicit funds. Austria’s Lead Role in EU Legal Action The Austrian judiciary is coordinating efforts across the EU…
Introduction: Beyond the Masterminds – Who Else Is Responsible? When investigating complex criminal enterprises like the vast Israeli-run binary options and broker scams, it becomes clear that liability doesn’t stop with the top leadership. These operations depend on multilayered hierarchies, and those involved at every level—including call center agents—must be held to account. The U.S. Department of Justice has demonstrated this in the Yukom Communications case, where boiler room employees were directly prosecuted. This U.S. precedent should serve as a template for legal reforms in the EU and Israel, where such schemes continue to operate (press release). Retention Agents: The…
Cross-Border Investigations into Lenhoff-Barak Network Advance The multi-jurisdictional investigation into large-scale broker scams connected to German national Uwe Lenhoff and his associates Gal Barak, Gery Shalon, and Vladislav Smirnov is steadily progressing. Although complex and spanning several countries, the efforts by European authorities appear to be yielding results as investigators close in on the main perpetrators and their network of enablers. Authorities across the EU are preparing charges in multiple cases involving well-known fraudulent broker platforms such as: Option888 XTraderFX SafeMarkets OptionStarsGlobal ZoomTrader Given the high number of victims affected by these schemes, legal action is expected to unfold in…