Background

EFRI Campaign, Avi Itzkovich and James Henry Vigottski

Article arrow_drop_down
crook

The EFRI campaign, which was started in April 2019 by the media and EFRI, aims to reimburse investors who were duped by the broker scam KayaFX for their money. Since then, victims have provided us with a wealth of information that gradually but definitely paints the whole picture of this Bulgarian-Israeli broker scam enterprise. Actually, this scam’s perpetrators have been at it since 2014. First there was Tradorax, which offered binary options, and its running business, Alagos Limited (Gibraltar). Even though businesses and domains (Trading Styles) have changed since then, fraud hasn’t altered.

Switching brands and boiler rooms in Israel

It is crucial to realise that while the boiler rooms behind the scenes stay the same, trading styles (brands and domains), operational companies, and frontline staff change on a regular basis. Customer information is sold or traded amongst the various trading models. Based on the data that we have access to, Mercure Group EOOD (formerly known as Rax Media EOOD) and ABC Global EOOD, two Bulgarian firms, were and still are the boiler rooms—marketing companies or business process outsourcing providers—behind Tradorax and its successor brands. Both run sizable boiler rooms in Sofia that employ dozens of people.

The people in charge of the boiler rooms are Israelis, just like E&G Bulgaria, owned by Israeli Gal Barak. Established in January 2014 as RAX Media Ltd (ΜΞС ΜЕДИА) in Sofia, Bulgaria, Mercure Group EOOD was given the business number 202913389. Avi Itzkovich (Itzkovic) and James Henry Vigottski (Wygodsky) founded the company. According to the Bulgarian Companies Register, the company’s management team consists of a. The individuals associated with this plan will be covered in further detail in a different report.

Financial Regulator alerts

The authorities in charge of overseeing the financial markets have warned repeatedly about the illicit and dishonest trading practices, as well as the people who practise them. The following is a list of cautions:

The dates on which the investor warnings above were published demonstrate that this broker scam scheme is still in operation today, and authorities are still very busy handling the large number of complaints. It should be mentioned that regulators were not entirely aware of the possibility of binary options scams before 2016.

As a result, there weren’t many public alerts before 2016. Investors frequently take months to detect fraud, and regulators are only prompted to take action by investor complaints. In this regard, there can occasionally be a significant delay between the time the fraud is committed and the authorities’ public investor warning.

Companies and brands involved

Use EFRI to report your claims.

In the event that you have fallen prey to broker scams and their various trading tactics, kindly register with our European Fund Recovery Initiative (EFRI). We also appreciate all of the information you have provided about these brokers, their offenders, beneficial owners, payment service providers, and accomplices. Together, we can expose this massive scam, bring the perpetrators to justice, and get your money back.

Suspects in an Israeli-run investment scam are apprehended by European and Israeli law enforcement.

Police conducted searches and arrests on May 11 in relation to the purportedly fraudulent websites Tradorax, Tradervc, Kayafx, Kontofx, and Libramarkets in a number of different nations.

According to Europol, Israeli police last month made an unusual arrest in relation to a suspected €30 million ($36 million) investment scam.

During a cross-border “action day” on May 11, Europol reported that five individuals were detained in Bulgaria and one in Israel in relation to “a fraud scheme organised mainly by Israeli nationals.”

Earlier, five more individuals were taken into custody in Spain.

With assistance from law enforcement in Bulgaria, Israel, Latvia, North Macedonia, Poland, Spain, and Sweden, the German police spearheaded the operation.

The call centres operating out of North Macedonia and Bulgaria were part of the purported fraud scheme. The purported fraud operation resulted in losses of approximately €30 million for Europe.

The Times of Israel was informed by a person with knowledge of the inquiry that the suspects were in charge of the purportedly fraudulent internet trading platforms Tradorax, Tradervc, Kayafx, Kontofx, and Libramarkets. The websites allowed users to invest in cryptocurrency, CFDs, and binary options.

While TraderVC and Libramarkets used a software platform called Panda TS, Tradorax used the technology provided by Israel’s SpotOption, which was charged with fraud by the US Securities and Exchange Commission in April.

The criminal network allegedly used search engines and social media advertising to entice thousands of victims, according to Europol. Then, it is said that these victims were coerced into making investments in cryptocurrency, CFDs, or high-risk options. German authorities, however, claim that the money was just stolen by the alleged scammers and never really invested. The suspects used software that could be manipulated to show gains from their investments so that victims would be motivated to invest even more money.

Approximately twelve locations in Bulgaria, Israel, Poland, North Macedonia, and Sweden were searched, according to Europol. High-end cars, jewellery, real estate, electronics, and almost €2 million ($2.4 million) in cash were all seized by the police.

Images released by German police in Koblenz, who looked into the purported fraud ring, depict the thieves’ opulent working area.

The fraud gang members, who are between the ages of 32 and 65, are of German, Bulgarian, Israeli-Romanian, Polish, Danish, and Belgian nationalities, according to Koblenz police.

According to a source who spoke to The Times of Israel, the lone captured Israeli is a dual citizen of Romania and Israel and was taken into custody in Bulgaria.

According to documents obtained by the Times of Israel, Avi Itzcovich, an Israeli-Romanian national, was the Tradorax’s manager.

Itzcovich, along with an Israeli-Belgian named Jack Wygodski or Jacques Henri Wygodski, controlled a company called Raks Media in Sofia, Bulgaria. Tradorax posted job openings in 2015 for Israelis looking to move to Bulgaria to work in a call centre.

According to reports, Tradorax stopped operating in September 2017, just a few months after Tradorax was mentioned in an article about binary options scam published by Britain’s Independent.

The Israeli Knesset outlawed the selling of “binary options,” a type of financial instrument, in 2017. Numerous individuals who operated call centres out of Israel relocated their operations abroad and/or modified their business plan such that the scam now involved the sale of cryptocurrency, contracts for differences, or FX. The Times of Israel was recently informed by prosecutors in a European nation that although call centres for investment scams are now dispersed throughout the continent, investigators have repeatedly discovered that the service providers on scam websites are Israeli, or that the money obtained through fraud ends up in Israeli bank accounts or in the bank accounts of people who are of Israeli descent.

Although thousands of people were employed in the online fraud industry, Israeli prosecutors have indicted only a few of these individuals and stole billions of dollars.

Settlement

In the meantime, the US Securities and Exchange Commission declared on May 25 that it had achieved a settlement with Israeli father and son Gil and Raz Beserglik, as well as German national Kai Christian Petersen. The individuals were accused of being in charge of tens of millions of dollars’ worth of fraudulent activities. They had owned, controlled, and ran the binary options websites Bloombex Options, Morton Finance, and Startling Capital.

The three men decided to settle the case without acknowledging or disputing the charges made in the SEC’s complaint.

Petersen consented to pay a $100,000 civil penalty in addition to $200,296 in disgorgement and prejudgment interest. Gil Beserglik consented to pay a $300,000 civil fine in addition to $2,347,224 in disgorgement and prejudgment interest. Raz Beserglik consented to pay prejudgment interest of $2,086,421 in addition to disgorgement.

The SEC’s investigation was conducted by Jason Anthony and Deborah Maisel, and supervised by Jennifer Leete. The litigation was conducted by Ken Donnelly and Samantha Williams, and supervised by Fred Block.

About the author

James Assali
trending_flat
James Assali was Charged for Transnational Mortgage Modification Fraud?

The owner of a Costa Mesa-based loan company, James Assali, is the target of aggressive legal action from law enforcement agencies. James Assali is charged with participating in dishonest practices about loan modification. The individual in charge of the Costa Mesa-based mortgage and escrow company's refinancing is the target of intense pursuit by law authorities. This man is charged with running a loan modification scheme that cheated and mistreated people in California and other states on purpose. The prosecution has demonstrated that victims have been caused by dishonest actions not just in California but also in Washington, Florida, Minnesota, and Maryland. The subject of the investigation, an Irvine native by the name of James Toufic Assali, is presently the target of numerous serious accusations. The defendant faces eighteen criminal counts with suspected grand theft and three more felonies specifically connected […]

trending_flat
Warning Against Phoenix Capital Group Holdings for Consumers

To clarify the crucial aspects of this organization, I have several grievances with Phoenix Capital Group Holdings. There are some favorable reviews as well, but since that's just how things work, we tend to focus on the bad ones. It is necessary to understand the background and history of Phoenix Capital Group Holdings before proceeding. Phoenix Capital Group Holdings, LLC: A Brief Overview A disputed oil and gas mineral rights acquisition and investment organization, Phoenix Capital Group Holdings, LLC was founded in 2019 and has its headquarters in Denver, Colorado. The company's operations mostly include mineral rights purchases.  Several locations, including Irvine, California, Casper, Wyoming, Dallas, Texas, and Fort Lauderdale, Florida, are included among its satellite offices.  The corporation, which is controlled by a family, directs its efforts toward aggressive capital deployment and asset management. It often gives priority to […]

Futurenet
trending_flat
Futurenet Scam Warning: All You Need to Know

In 2014, FutureNet emerged as a fraudulent operation disguised as a multi-level marketing platform offering huge profits via a matrix cycler technology. It entered the cryptocurrency space in 2017 with the introduction of FuturoCoin, which quickly crashed and caused investors to suffer large losses.  FutureNet, which was founded by Roman Ziemian and Stephan Morgenstern, scammed thousands of people worldwide before the co-founders were subject to legal action and international arrest orders. Roman Ziemian: A co-founder of FutureNet, was arrested in Italy and fled the scene Roman Ziemian, a co-founder of the infamous Ponzi scam FutureNet, was detained by Italian police, freed, and then left the nation. This arrest comes in response to a South Korean warrant alleging Ziemian engaged in a multimillion-dollar fraud. In 2014, Ziemian founded FutureNet with Stephan Morgenstern as a business partner. With the launch of FuturoCoin […]

trending_flat
Carl Koenemann: A Criminal Alcoholic? (2024)

Carl Koenemann claims to be a motivational speaker who stimulates future inventors through motivating lectures. As previously said, the global entrepreneurial scene changes, with visionary entrepreneur Carl Koenemann emerging as a source of inspiration and empowerment for future innovators. Carl Koenemann believes that his fascinating motivational presentations are rewriting the success story, driving individual growth, and inspiring ambitious entrepreneurs to build their own paths. Carl Koenemann states that his story is one of determination, honesty, and a strong desire to encourage innovation across technology, marketing, and business consultancy. Carl Koenemann, despite his self-absorbed nature, claims to have rapidly found his stride in the dynamic world of technology, beginning with a solid academic background in electronics and communications. Carl Koenemann boasts about his early experiences, stating that they created the framework for a meteoric rise inside a huge technology corporation, as […]

Related

James Assali
trending_flat
James Assali was Charged for Transnational Mortgage Modification Fraud?

The owner of a Costa Mesa-based loan company, James Assali, is the target of aggressive legal action from law enforcement agencies. James Assali is charged with participating in dishonest practices about loan modification. The individual in charge of the Costa Mesa-based mortgage and escrow company's refinancing is the target of intense pursuit by law authorities. This man is charged with running a loan modification scheme that cheated and mistreated people in California and other states on purpose. The prosecution has demonstrated that victims have been caused by dishonest actions not just in California but also in Washington, Florida, Minnesota, and Maryland. The subject of the investigation, an Irvine native by the name of James Toufic Assali, is presently the target of numerous serious accusations. The defendant faces eighteen criminal counts with suspected grand theft and three more felonies specifically connected […]

crook
trending_flat
Chris Rapczynski: A Fraudster? (2024)

Boston construction firm Sleeping Dog Properties and New England Construction Resources owner and president Chris Rapczynski has been charged with various workers' compensation fraud violations. Six workers' compensation fraud charges, one failure to produce insurance charge, and five theft charges over $250 are filed. Suffolk Superior Court will arraign Rapczynski after a Suffolk County grand jury indicted him. The State's Insurance Fraud Bureau investigated these charges. Attorney General Maura Healey spoke out against firms not having workers' compensation insurance, citing worker hazards and financial burdens. She committed to working with the IFB to punish personal fraudsters. Anthony M. DiPaolo, Chief of Investigations at the Insurance Fraud Bureau, stressed the IFB and Attorney General's commitment to fighting premium evasion and its harmful effects on the system and honest businesses. In 1997, Rapczynski founded Sleeping Dog Properties as co-owner and president. Investigators […]

lawsuits
trending_flat
Spencer Schneider: A Criminal?(2024)

In the case, Schneider is charged with defamation for calling the group a cult that supports "Manhattan Cult Story: My Unbelievable True Story of Sex, Crimes, Chaos, and Survival" and using forced labor and human trafficking. First, we must understand Spencer Schneider. Who is Spencer Schneider?  Spencer Schneider, the ex-husband, has drawn a lot of attention to himself. He details the activities of the alleged cult in his book, which is chock full of horrible charges of racism, homophobia, physical and mental torture, and child abuse. Maybe a member of the cult once.  Schneider, who joined the group in 1989, tells how the cult's leader Gans ordered him to marry May straight away. Schneider's tale is given the cult's background. In "Manhattan Cult Story: My Unbelievable True Story of Sex, Crimes, Chaos, and Survival," he writes of the horrifying experiences […]

crook
trending_flat
Adam Vincent Gilmer: A Fraudster? (2024)

Originally from Johannesburg, South Africa, Adam Vincent Gilmer relocated to the United States in 1989. He asserts that he is an entrepreneur and that he was born there. According to Adam Vincent Gilmer, his companies produce and market certified organic consumer goods through major online retailers, retail and convenience stores like 7-Eleven, health food stores, and wholesale purchasing clubs like Costco. What he claims about his work life is that his companies create and market these products. Adam Vincent Gilmer asserts that he has acquired more than 34 years of experience in direct sales, which encompasses direct-to-consumer, convenience stores, Multi-Level Marketing (MLM), and Merchandising platforms. He is happy with his professional abilities and the work that he has accomplished. Adam is attempting to fulfill his desire to amass wealth. In his phony articles, Vincent Gilmer refers to the fact that […]

lawsuits
trending_flat
David Baker: A Criminal? (2024)

A spokesman for the clinic said that following a board of directors inquiry into a claim that David Baker-Hargrove had sexually abused a worker, the renowned psychologist and LGBT community member from Orlando will resume his role as president of the Two Spirit mental health clinic. Psychologist and seasoned mental health counsellor Dr. David Baker-Hargrove is located in Orlando, Florida. More than 25 years of service have been provided to the LGBTQ+ community, with an emphasis on transgender-specific mental health therapies. Dr. David Baker-Hargrove has been licensed as a mental health counsellor by the State of Florida. In 2002, she received her Ph.D. in counselling psychology from Barry University. In 1995, he started his professional career. But one of Both the 23-year-old employee Bobby Hermida and the 53-year-old psychotherapist David Baker-Hargrove acknowledged engaging in "inappropriate communication" in a statement provided […]

lawsuits
trending_flat
ALEX PODGURSKI California:  A Criminal? (2024)

It has been determined that two individuals, namely Alex Podgurski California and Savanna Farmer, have been arrested in Arizona on suspicion of engaging in money laundering activities from the state of California. Multiple charges have been brought against them, and they have been put into a jail in Maricopa County. Extradition hearings are now being held.  Alex Podgurski California was detained for money laundering:    Arizona officials arrested two defendants wanted in California for money laundering. On Tuesday, 33-year-old Alex Podgurski and 29-year-old Savanna Farmer were arrested in a rented home in Paradise Valley, Arizona. Paradise Valley police served a warrant at the suspects' home to arrest them. Law enforcement found a large cache of electronic and paper records at the scene during this warrant execution and seized them for further investigation. After their arrest and evidence seizure, Alex Podgurski and […]

Be the first to leave a comment

Leave a comment

Your email address will not be published. Required fields are marked *

Login to enjoy full advantages

Please login or subscribe to continue.

Go Premium!

Enjoy the full advantage of the premium access.

Stop following

Unfollow Cancel

Cancel subscription

Are you sure you want to cancel your subscription? You will lose your Premium access and stored playlists.

Go back Confirm cancellation