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Israeli and European police arrest suspects in Israel-run investment fraud

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03.06.2021

In a rare move, Israeli police last month arrested a suspect in an alleged €30 million ($36 million) investment scam, according to Europol.

In a cross-border “action day” that took place on May 11, five people were arrested in Bulgaria and one in Israel, in connection with what Europol described as “a fraud scheme organized mainly by Israeli nationals.”

Five other suspects were arrested in Spain at an earlier date.

The action was led by German police with the cooperation of law enforcement from Bulgaria, Israel, Latvia, North Macedonia, Poland, Spain and Sweden.

The alleged fraud scheme involved call centers run from Bulgaria and North Macedonia. European losses from the alleged fraud scheme amounted to an estimated €30 million.

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A source with knowledge of the investigation told The Times of Israel that the suspects had operated the allegedly fraudulent online trading websites Tradorax, Tradervc, Kayafx, Kontofx and Libramarkets. The sites offered investments in binary options, CFDs, and cryptocurrencies.

Tradorax used the Israeli SpotOption platform, which was charged with fraud by the US Securities and Exchange Commission in April, while TraderVC and Libramarkets used a software platform known as Panda TS.

According to Europol, the criminal network allegedly lured thousands of victims through advertising on social media and search engines. These victims were then allegedly induced to invest in high-risk options, CFDs or cryptocurrencies. However, according to German police, the money was never actually invested but simply taken by the suspected fraudsters. The suspects used software that could be manipulated to show gains from their investments so that victims would be motivated to invest even........

© The Times of Israel


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