Uncovering the Financial Infrastructure Behind Illegal Broker Schemes
Overview
In recent months, investigative authorities and independent research organizations such as the Organized Crime and Corruption Reporting Project (OCCRP) have intensified efforts to uncover the vast network of illegal brokerage operations responsible for defrauding tens of thousands of investors globally. According to FBI estimates, binary options scams alone may have cost investors up to $10 billion annually.
Among the leading figures orchestrating these schemes are Gal Barak, currently under arrest, along with Gery Shalon and Vladislav Smirnov. Another key player, Uwe Lenhoff—now imprisoned—ran fraudulent broker operations under the publicly traded Veltyco Group.
The Role of Unauthorized German Payment Providers
As investigations progressed, a substantial web of unauthorized payment service providers (PSPs) based in Germany was revealed. These entities have facilitated the transfer and laundering of tens of millions of euros extracted from unsuspecting investors, thereby playing a critical role in enabling fraud.
Operators such as E&G Bulgaria, along with Lenhoff’s network, established numerous German shell companies. These entities received client payments, processed them, and forwarded the funds—after deducting hefty fees—to accounts controlled by broker scheme operators or their offshore affiliates.
Fraudulent Payment Infrastructure in Action
Clients of scam platforms such as:
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Blue Trading
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XTraderFX
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SafeMarkets
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Option888
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TradoVest
…were directed to send their payments to bank accounts held by German entities. These accounts acted as intermediaries, channeling money to the ultimate beneficiaries behind the schemes.
BaFin’s Intervention and Investigations
The German financial regulator BaFin has initiated action in response. In December 2018, StronIT GmbH, based in Cologne, was ordered to cease unauthorized financial services in connection with Blue Trading. Cologne, notably the hometown of Uwe Lenhoff, appears to be a central hub in the fraudulent PSP ecosystem.
For over 20 years, Lenhoff and his partners ran illegal gambling and brokerage operations. Through entities such as the Veltyco Group, they allegedly diverted hundreds of millions from retail investors. Charges against Lenhoff include fraud, money laundering, and financial crimes.
Key Illegal PSPs Identified in Cologne
B2G GmbH
Another major player in the scheme is B2G GmbH, also headquartered in Cologne. Operated by Rainer Treuer (LinkedIn profile) and Oleg Shvartsman—the latter alleged to have ties to Russian intelligence—the company presents itself as a financial advisory firm.
According to a public presentation shared on LinkedIn, B2G GmbH claims to have managed over 300 companies and facilitated the movement of more than €790 million. The extent to which this capital was channeled into fraudulent broker networks like Blue Trading remains under scrutiny.
Shvartsman has drawn international media attention in the past due to his controversial background and alleged links to Russian political structures. An investigative article by The New York Times published in 2007 provides detailed insight into his past affiliations and public statements (read the article).
P2P GmbH
In addition to B2G, P2P GmbH, another Cologne-based firm, is implicated. This entity reportedly collects investor funds via accounts in Germany and the Netherlands, forwarding the proceeds to unlicensed brokers abroad.
Broader Network: Estonia and the UK
Beyond Germany, similar operations have been linked to actors in Estonia and the United Kingdom. One such group is the Vilardes Group Ltd, associated with Kirill Agranovsky (also known as Kiril Paksjutov) and his mother Elvira Aganovskaya. These individuals operate companies across multiple jurisdictions, with ongoing investigations poised to reveal additional connections.
A detailed report focused on this group and their alleged activities will be released following further verification and research.
Submit Claims and Evidence
If you are a victim of Blue Trading or possess information regarding its affiliates, including Onyx Capital or any individuals involved, your assistance could prove vital.