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:
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XTraderFX
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SafeMarkets
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OptionStarsGlobal
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Golden Markets
These entities were supported by a network of illegal boiler rooms located in Bulgaria, Serbia, and Bosnia-Herzegovina, which were used to solicit and defraud EU investors. Barak operated these call centers alongside his Bulgarian associate Marina Andreeva and other Israeli nationals including Kfir Levy, Itzik Gellet, and Chen Ganon.
According to reports, the scheme affected tens of thousands of investors across the EU, resulting in an estimated financial loss exceeding €100 million.
Connections to Germany and the Balkans
Barak’s German partner, Uwe Lenhoff, was arrested by Austrian authorities and remains in custody in Germany, facing similar allegations. Additional suspects connected to their operations are currently under investigation.
Together, Barak and Lenhoff co-managed Global Payment Solutions Podgorica DOO in Montenegro, a venture that quickly deteriorated amid disputes with local associates who later accused them of misconduct.
Barak also operated additional boiler rooms in Belgrade and Sarajevo, which were eventually closed following allegations of fraudulent activity.
Statements and Ongoing Investigations
According to multiple sources, Gal Barak has made statements acknowledging his involvement in the management of the broker platforms and related boiler room operations. Media outlets have also reported that Barak remains under investigation by Bulgarian authorities for separate offenses.
It is not yet clear whether these domestic legal proceedings in Bulgaria will delay or obstruct his extradition to Austria, where coordinated legal efforts are underway to prosecute those involved in the broader scam network.
The coming weeks are expected to provide more clarity on the outcome of Barak’s extradition process and the extent of cooperation between EU member states in addressing cross-border financial fraud.