We have been reporting on the illegal activities of the Wolf of Sofia, Gal BARAK, and its partners Marina ANDREEVA, Gery SHALON and Vladislav SMIRNOV for several weeks now. Although the binary options are already banned in most countries and their companies have been received cease and desist orders by many financial market regulators, the game of ripping off customers with illegal trading platforms continues. Currently, they expand under the umbrella of the BINEX Group.
What are Binary Options?
Gal Barak: The Wolf of Sofia
Greetings from Kiev: Cybercrime BINEX case and its background
People and structure of the BINEX Group
The BINEX Group is officially managed by the Ukrainian Leonid OLSHEVSKYI. He is managing director and shareholder of both the Czech Dreamspay Technologies and the Bulgarian BINEX EOOD. According to the information available to us, however, the 67-year-old Leonid is only the frontman.
In fact, it is the Israeli Gery SHALON, the Russian Vladislav SMIRNOV, and the Israeli Gal BARAK, who lives in Sofia, who are beneficial owners and/or in control. Besides BINEX-Group, SMIRNOV and BARAK control the Sofia-based TRADOLOGIC, a software company that used to develop binary options & trading solutions. The UK-based BINEX Group LP is owned by the two Belize-based companies HOKKAIDO INVEST and OKINAWA HOLDINGS, both companies are associated with other questionable ventures (see UK Companies House). The company itself is managed by Leonid OLSHEVSKYI. Its domain www.binexgroup.com has been registered via Moscow.
According to reports from people close to the BINEX Group, SHALON is pulling the strings from New York. He cannot leave the USA because of his legal problems. The financial transactions of the BINEX group are apparently taken care of by Marina ANDREEVA.
Expanding fraud to new horizons
Instead of discontinuing business in view of the ban on binary options, the BINEX Group is expanding with increasingly audacious methods.
For example, the BINEX Group has recently launched many new illegal trading platforms where customers are lied to about the nature of the business. On most of these new trading platforms, customers are led to believe that the business is regulated (licensed). To this end, it is stated on the pages that they would carry out their activities through the licensed Bulgarian financial services provider Finex Ltd. However, this is denied when asked by Finex Ltd.
By falsely claiming to work with a licensed partner, the BINEX Group gains access to the banking system, receives the Merchant Identification Number (MID) and can freely collect funds from customers via actually unregulated and illegal platforms.
The mass-produced fraud
Gery SHALON, Vladislav SMIRNOV, and Gal BARAK control the entire value chain around the online sale of unregulated and/or illegal financial products. From software and platforms to boiler rooms and payment services, the three are able to offer everything from a single source. They are ready for mass production and that’s what they do.
When creating trading platforms, they don’t even bother to give them an identity anymore or brand it at all. All their platforms look quite similar, have similar domains and names. These are copy & paste mass-produced sites. The domains were registered via Panama or Moscow.
Behind the platforms the usual boiler rooms in Bulgaria, Ukraine, Serbia etc. perform their fraudulent activities. And of course, there are also the same payment service providers around SMIRNOV’s Dreamspay. Fraud against clients is being carried out more audaciously than mass production.
[to be continued]