Barak’s Sentence in Austria and Legal Battle in Germany
In September 2021, Israeli national Gal Barak was sentenced to four years in prison in Austria for his role in investment fraud and money laundering. Now, German prosecutors, led by Nino Goldbeck, seek to bring Barak to justice in Germany as well. Although Barak has appealed the indictment, the matter currently rests with the European Court of Justice (ECJ).
Meanwhile, Tal-Jacki Fitelzon, Barak’s former boiler room manager, has already been indicted in Germany. While Uwe Lenhoff, Barak’s long-time partner in crime, died in custody in 2020, other co-conspirators are expected to face charges soon. Authorities estimate that Barak and Lenhoff may have defrauded over 200,000 victims in Germany alone.
Unprecedented Scale of Cybercrime
The frauds linked to Gal Barak and Uwe Lenhoff are still under investigation across several European jurisdictions. In Germany, the offices in Saarbrücken and Bamberg are leading the inquiries.
These two men were not acting alone. Prosecutors believe the real orchestrators behind the massive online fraud network include:
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Gery “Gabi” Shalon (Israeli, charged in the U.S. for cybercrime)
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Vladislav “Vlad” Smirnov (Russian, listed as a suspect in Europe)
The true size of this international cybercrime organization remains unclear, but early figures are staggering.
Key Statistics:
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Victims in Germany: Over 200,000
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Criminal file size: More than 500 volumes
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Lawyer access: Restricted until fall, due to volume of documentation
The Dutch Link: Payvision and Booker’s Role
Uwe Lenhoff worked closely with financial partners in Amsterdam, notably Payvision CEO Rudolf Booker.
Allegations Against Payvision & Booker:
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Knowingly facilitated fraudulent transactions
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Processed tens or hundreds of millions of euros to offshore accounts linked to Barak and Lenhoff
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Continued processing payments up to their arrests in 2019
Without Payvision’s infrastructure and Booker’s involvement, prosecutors argue the fraud schemes would not have reached such scale.
Lenhoff’s Corporate Cover: Bet90 Holdings PLC
In addition to his work with Payvision, Lenhoff co-founded Bet90 Holdings PLC (formerly Veltyco Group PLC), listed on London’s AIM stock exchange.
This publicly traded entity served as a legitimate front for his criminal enterprise, funding aggressive marketing campaigns to attract victims to brands such as:
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Option888
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LottoPalace
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XMarkets
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ZoomTrader
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TradoVest
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TradeVest90
Fitelzon’s Indictment and Boiler Room Operations
Tal Jacki Fitelzon, Barak’s former VP of Sales, is accused of playing a leading role in E&G Bulgaria, the organization behind broker scams like:
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XtraderFX
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SafeMarkets
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OptionStarsGlobal
Prosecutors allege that Fitelzon managed daily operations in Barak’s boiler rooms. He now faces trial, with the prosecution pushing for a prison sentence. Read more in this report.
Fitelzon Case Summary:
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Named co-conspirator in German indictment
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Linked to 365 confirmed victims
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Former Barak partner estimates: 50,000+ global victims, over €200 million in losses
What’s Next: Precedent in the Making
As more evidence surfaces, additional indictments are expected around E&G Bulgaria and Lenhoff’s network. Should the ECJ approve the German charges against Gal Barak, another multi-year sentence may follow.
While a final ruling could take months, the case may become a landmark decision for Europe’s legal battle against organized online fraud.
This case could reshape how cybercrime is prosecuted across the EU. Stay tuned for further developments.