New Court Session Held in Bulgaria Today, judicial authorities in Sofia are once again addressing the extradition request from Austria regarding Gal Barak, an Israeli national accused of operating transnational financial fraud schemes. An EU arrest warrant was issued against Barak in early 2019 on charges including money laundering, aggravated fraud, and financial crime. He was detained in February 2019 during a coordinated enforcement operation, and subsequently placed under house arrest, reportedly for medical reasons. Broker Platforms and Associated Boiler Rooms Gal Barak is believed to have controlled a network of unregulated broker platforms, such as: XTraderFX SafeMarkets OptionStarsGlobal Golden…
Author: Tom
The Need for a Pan-European Strategy In the context of increasing cybercrime and investment fraud targeting EU citizens, a number of stakeholders have emphasized the urgency of implementing a coordinated, supranational strategy. Various organizations have submitted evidence and data-driven findings to enforcement agencies, prosecutors, and the European Commission to assist in this effort. Among the initiatives supported by these groups is the annual Cybersecurity Month, introduced by the European Commission to increase awareness and promote better practices. Report on Cyberscams Submitted to the EU Commission A comprehensive report on cyberscam operations across the EU has recently been submitted to the…
Background and Corporate Conflict In December 2016, Werner Boehm, co-founder of the publicly listed Canadian company BitRush Corp, became the subject of accusations by the company’s board in Toronto. Boehm rejected these claims and refused to step down, which led to legal action against him. This litigation was financially supported by Slovakian investor Igor Wollner, who aimed to increase his minority share in the company from below 20% to majority control. Wollner had engaged in discussions with Uwe Lenhoff and sought to shift BitRush’s focus toward speculative crypto opportunities. This strategic move clashed with Boehm’s vision. The Missing Partners and…
Overview of Investigations Regulatory bodies in Poland and other EU member states have initiated investigations into the operations of MoneyNetInt Ltd, a UK-registered payment service provider. The company is suspected of processing transactions on behalf of numerous fraudulent investment platforms, including binary options and unregulated brokers. Several whistleblowers and affected individuals have alleged that MoneyNetInt facilitated payments through its Polish bank accounts, acting as a financial intermediary in schemes that resulted in significant investor losses. Scam-or Project, an independent news platform focused on financial fraud, has also reported extensively on the PSP’s connections to unregulated trading schemes and highlighted its…
Background: Lenhoff’s Scams and Corporate Ties The Annual General Meeting of Veltyco Group, scheduled for September 19, 2019, carries substantial significance not only for shareholders, but also for those impacted by various online trading and lottery platforms linked to the company’s founder, Uwe Lenhoff. Uwe Lenhoff has been linked to a number of controversial online operations, including binary options platforms like Option888, TradoVest, and XMarkets, as well as the lottery betting site LottoPalace. These ventures were publicly associated with Veltyco, which handled much of the marketing and customer acquisition. In early 2019, Lenhoff was taken into custody by authorities and…
Overview: Payvision’s Role in Broker Fraud Networks This article continues our deep dive into the Payvision story. In Part I, we outlined the key facts: Payvision, an Amsterdam-based financial services provider led by CEO Rudolf Booker, played a significant role in processing payments for major broker scams connected to German national Uwe Lenhoff and Israeli partner Gal Barak. In this second installment, we examine the flow of funds from defrauded investors to fraudulent operators through entities such as GPay Ltd and Rockarage Ltd, both controlled by Gal Barak. These companies supported illicit schemes including XTraderFX, SafeMarkets, Golden Markets, and CryptoPoint.…
The Rise and Fall of Israel’s Binary Options Industry In 2016, Israeli investigative journalist Simona Weinglass shed light on the widespread binary options fraud in her groundbreaking series “The Wolves of Tel Aviv.” Her reports uncovered that tens of thousands of Israelis—mainly in Tel Aviv—had been working in fraudulent trading operations, with the binary options industry once hailed as a pillar of Israel’s tech boom. Weinglass repeatedly criticized political inaction in Israel, arguing that it enabled the exploitation of countless global victims. Following the industry’s collapse, the key figures behind the scams are now entangled in a vicious legal, reputational,…
Ongoing Legal Battle for Extradition For more than six months, legal authorities in Austria and Bulgaria have been engaged in a jurisdictional tug-of-war over the extradition of Gal Barak. Despite multiple scheduled court sessions in Sofia, delays have been frequent. The next hearing is currently set for November 4, 2019. Meanwhile, attention has shifted to identifying Barak’s allies and collaborators. According to the Bulgarian publication Lupo, Barak—referred to as a top Israeli fraudster—is attempting to deflect responsibility by pointing fingers at his former associate and fellow Israeli, Ilan Tzorya. A Test Case for the European Union The cybercrime allegations tied…
Background and Legal Developments The ongoing legal proceedings concerning the extradition of Gal Barak, an Israeli national accused of operating fraudulent investment schemes, continue to unfold. Barak is currently facing extradition from Bulgaria to Austria, where legal action is being pursued in connection with alleged fraud and money laundering activities. His former business associate, Uwe Lenhoff, has been in custody since early 2019, awaiting trial in Germany. Investigations have also extended to other figures connected to Barak’s operations, including Israeli citizen Gery “Gabi” Shalon and Russian national Vladislav “Vlad” Smirnov. Authorities in both Europe and the United States are currently…
The 2019 Arrest of Uwe Lenhoff In January 2019, German citizen Uwe Lenhoff was taken into custody following an extensive investigation by authorities in Germany, Austria, and other EU member states. Prosecutors allege that Lenhoff operated a broad network of fraudulent binary options websites, defrauding tens of thousands of retail investors across Europe with estimated losses surpassing €100 million. Simultaneously, a European arrest warrant was issued for his associate, Gal Barak of Israel, signaling the coordinated efforts by law enforcement to dismantle the operation. The Lenhoff Network: A Closer Look Currently detained in Germany, Uwe Lenhoff, 55, awaits trial. Additional…