Last updated on April 9, 2020
1st part of trial preparation for E&G Bulgaria
This is the first part of the series on the public discussion of the flow of money around the currently largest cybercrime court case in Europe, Gal Barak‘s E&G Bulgaria. FinTelegram and EFRI want to mobilize the victims of the scams and together with the prosecutors to take action to secure the stolen money for funds recovery. We want to mobilize as much as possible victims of this cybercrime scheme – and there are more than 30,000 vicims we hear – before the trial starts.
Registered in Sofia, Bulgaria, E&G Bulgaria (formerly E&G Finance) was the EU holding company of a cybercrime organization that operated vast broker scams such as XTraderFX, SafeMarkets, OptionStars, Golden Markets or Crypto Point. The beneficial owners and principals behind E&G Bulgaria were the Israeli Gal Barak, the so-called Wolf of Sofia, and his Bulgarian wife Marina Barak (formerly Marina Andreeva). While Marina is recorded as one of the main suspects in the criminal files but still unbothered in Bulgaria, her husband Gal Barak is currently in custody in Austria and awaiting indictment and trial. FinTelegram has made a significant contribution to the clarification of E&G Bulgaria through insiders, whistleblowers, and the support of many victims.
The indictment is expected to be unsealed later 2020 and the trial may start at the end of 2021 or the beginning of 2021. Until then, we want to accumulate further victims and evidence in order to claim their losses in court in the interest of the more than 30,000 victims of E&G Bulgaria. We are therefore following the trail of money through bank accounts and involved payment processors. Through the European Funds Recovery Initiative (EFRI), co-founded by FinTelegram, corresponding money laundering reports have already been filed in various jurisdictions in recent months in order to accelerate further prosecution by the authorities.
GPay – One of scheme’s most important payment processor
GPay Ltd, registered in August 2017 at UK Companies House under Company No 10938332, was one of the main companies for the processing of credit card payments of the customer victims of the various scam brands of E&G Bulgaria. The Bulgarian Georgi Komisarov is registered as director and controlling person of GPay. He is a frontman and nominee shareholder of Gal Barak and is recorded as a director in some other entities of the cybercrime organization. GPay was for example registered as a merchant with the Dutch Payvision of Rudolph Booker. GPay‘s accounts with the Bulgarian Investbank were used to distribute the incoming payments of the client-victims. A small part was used to finance the boiler rooms of E&G Bulgaria, furthermore the marketing partners were paid for the acquisition of new victims. However, the largest part disappeared in the offshore companies of Gal Barak and his wife Marina Barak, who was Chief Financial Officer of the scheme.
An insider estimates that in 2017 and 2018 more than €60 million in customer funds were cleared through GPay alone. In total, E&G Bulgaria is said to have stolen more than €200 million between 2017 and 2018.
In the tables below, we have listed the most important entities discovered so far around GPay. We are aware that these are not all entities yet. The list is continuously updated by EFRI and FinTelegram.
GPay has processed bank and credit card deposits and cryptocurrencies through various partners. By far the most important partner was Payvision, which transferred millions to GPay until Gal Barak was arrested in early 2019. At that time, numerous warnings from financial market regulators were already known that warned of GPay as a scam. In Germany, Paul Lopatin, who operated some of the illegal German payment processors, was recently convicted (read FinTelegram article here).
|E&G Bulgaria EOOD||Bulgaria||Cybercrime Holding|
|GPay Ltd||United Kingdom||Illegal payment processor|
|Payvision||Netherland||registered payment processor|
|ARMCORP East Europe Ltd||Delaware / Hungary||Illegal payment processor|
|How to pay Pty Ltd||Australia||Payment processor|
|Davis Consulting GmbH||Germany||Illegal Payment processor|
|W2P Solutions Ltd||Hong Kong||Illegal Payment processor|
|Workplaxe Consulting GmbH||Germany||Illegal Payment processor|
|GREKQI Group s.r.o.||Czech||Illegal Payment processor|
|4COM Network SRL||Romania||Illegal Payment processor|
|P2P Consulting GmbH||Germany||Illegal Payment processor|
|Network Consulting GmbH||Germany||Illegal Payment processor|
|Segapa E.M.I. Limited||Cyprus||Regulated Payment processor|
|Condesk GmbH||Germany||Illegal Payment processor|
|Transact Europe EOOD||Bulgaria||Illegal Payment processor|
|MUU Group Ltd||Hong Kong||Illegal Payment processor|
Gal Barak and Marina Barak used a range of different offshore vehicles around the world to launder money. They also set up bogus companies in Estonia through which they processed their scams and money-laundering. Below are the most important of these companies to which GPay payments were made.
|GM Globe Ltd||Hong Kong||shareholder of Tradologic|
|Seagulf Ltd||Marshall Islands||A private entite of the Barak’s|
|Start Markets Ltd||Marshall Islands||A private entity of the Barak’s|
|Bright Ideas Ltd||Marshall Islands||A private entity of the Barak’s|
|Rockarage Ltd||Marshall Islands||operator of broker scams|
|Dynamic Solutions Ltd||Marshall Islands||operator of broker scams|
|Global Media Partners Inc||British Virgin Islands||A private entity of the Barak’s|
|Wave Market Ltd||Hong Kong||A private entity of the Barak’s|
|Global Advertising Partners EOOD||Bulgaria||scam facilitating entity|
A significant portion of customer deposits via GPay was used to pay accomplices and partner companies. These have introduced thousands of customer victims to the Broker Scams through marketing campaigns. Below are only the most important of these partners who have received payments through GPay.
|Online Prospect Ltd||Hong Kong||Online Marketing and money-laundering, UBO Simon Tetroashvili|
|DYISY Group Ltd||Israel||UBO Simon Tetroashvili and related to Online Prospect Ltd|
|Tiberg Limited||Cyprus||Online Marketing campaigns|
|Golden Anchor Ventures Ltd||Hong Kong||operator of Payments88|
|Moorwand Ltd||United Kingdom||Regulated payment processor|
We will soon publish the second part of #FollowTheMoney for the E&G Bulgaria case. We are thankful for every hint from insiders or whistleblowers.