On January 12, 2022, the Munich Regional Court handed down a verdict against Jacki Fitelzon, a central figure in the E&G Bulgaria cybercrime organization. The Israeli national was a close associate of Gal Barak, also known as the “Wolf of Sofia,” and admitted guilt in connection with the charges of commercial and organized fraud. Fitelzon received a prison sentence of 82 months, and €760,000 was ordered to be confiscated.
Although the sentence is not yet legally binding, the court has granted Fitelzon’s request for admission into a rehabilitation facility, citing his disclosed issues with substance abuse.
Case Snapshot
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Case File Name |
E&G Bulgaria |
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Cybercrime Activities |
– Online trading scams – Boiler room operations – Investment fraud – Money laundering |
|
Ringleaders & Defendants |
– Gery Shalon – convicted in the U.S. – Gal Barak (a.k.a. “Wolf of Sofia”) – 4-year sentence (Austria) – Marina Barak – acquitted in Austria – Vladislav Smirnov – suspect – Jacki Fitelzon – sentenced to 82 months – Kfir Levy – in pre-trial custody – Itzik Gellet, Amit Hulin, Chen Ganon, Maor Sioni – suspects |
|
Related Cases |
– Veltyco & Uwe Lenhoff – indicted in Germany – Tradologic – indicted in Austria |
Inside the Fitelzon Trial
During the trial proceedings in Munich, the court ordered that Jacki Fitelzon be placed in a rehabilitation facility following his testimony regarding his long-term addiction to alcohol and drugs. He claimed these addictions were exacerbated during his tenure at E&G Bulgaria, where he held the role of Vice President of Sales.
Fitelzon also stated that he and his family were threatened by senior figures within the organization, contributing to his continued involvement in the fraudulent operation. Despite being a subordinate to Gal Barak, his sentence exceeded Barak’s own, highlighting the court’s assessment of his role and the damages caused.
Comparing Sentences
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Gal Barak: 4 years (Austria), nearly €4 million in restitution
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Jacki Fitelzon: 82 months (Germany), €760,000 confiscated, rehab ordered
New Indictments on the Horizon
The Fitelzon indictment also named Marina Barak as a central participant in the cybercrime operation, despite her 2021 acquittal in Austria. German prosecutors, led by Nino Goldbeck, have not closed the case and are expected to file further charges.
Additionally, in Austria, Ilan Tzorya, the founder of Tradologic, has been indicted following allegations from Gal Barak. The two had reportedly split around 2017 over control of the Tradologic white-label platform, previously co-owned with Gery Shalon and Vladislav Smirnov. However, according to court documents, Tzorya had no operational role in E&G Bulgaria’s boiler rooms and denies involvement in any criminal conduct.
Legal Outlook for the Baraks
Further criminal proceedings are planned against Gal Barak and Marina Barak in Germany, although the defense has filed an appeal. The European Court of Justice currently holds jurisdiction over whether the German charges will proceed.
What’s Next?
The E&G Bulgaria cybercrime case remains active, with additional prosecutions expected as more evidence emerges.
Stay informed – this international fraud investigation is far from concluded. More developments are expected as courts across Europe continue to examine the roles of key players.