The Austrian Financial Market Authority (FMA) today warned investors against the illegal broker platform XtraderFX. Again! This illegal broker scheme is part of the network of E&G Bulgaria of the Israeli Gal Barak and his partners Gery Shalon and Vladislav Smirnov. While Gal Barak was arrested in an international police operation and is waiting for extradition to Austria, his fraud sites are being operated. According to FinTelegram’s information, Gal Barak‘s partners and his fiancee Marina Andreeva are currently running the business and continue to damage investors with the support of illegal German payment services providers.
Immunity For An Israeli Fraud System?
It is staggering how little the competent authorities in Israel and Bulgaria are fighting already exposed fraud systems. They actually sort of tolerate them as long as they are “just” cheating citizens of other countries. Evidently, Bulgaria and Israel evidently appreciate the jobs created by those fraudulent schemes at the expense of cheated investors on other countries. To call this approach cynical would be a massive understatement.
After many months of work, the Austrian authorities managed to conduct an enforcement action against online fraud schemes operated by Israelis in Bulgaria. They also managed the arrest of one of the principals of this E&G Bulgaria scheme – the Israeli citizen Gal Barak.
Austrian officials withdraw and the Bulgarian authorities released Gal Barak into house arrest for alleged health problems. From where he and his partners continue to operate the fraud sites. Still “big style”. Authorities, media, and investors are aware of that. A joke, isn’t it? No, It’s actually an invitation to continue with fraud. “Crime pays off” is the message here!
Wake-Up Call For EU!
Given the approach of the Bulgarian authorities, one has to question why an EU member state like Bulgaria is so negligent with EU investors. The Bulgarian Investbank conducts money laundering big style, neglects all AML/KYC procedures and hence facilitates this online brokerage fraud. The EU financial market supervisory authorities are watching. Well actually, they deny to recognize it in the first place.
Dozens of Israeli citizens such as Gal Barak and Kfir Levy operate illegal broker schemes and boiler rooms in Bulgaria, damaging dozens of thousands of EU citizens, as has been proven and known. For many years already. And nothing happens? At least Austrian authorities worked to protect their citizens. But honestly, that’s an EU case!
Even a merely economic union must be able to protect its citizens within the Union. Where the economy happens, fraud also happens. It’s just two sides of a coin. That’s a fact. Obviously, we can work within the EU economically without borders but the authorities are not able to work across borders to fight economic or financial crime. While financial crime happens without borders, jurisdiction is still limited to
Where are the German authorities?
FinTelegram has reported about the fraudulent broker system Blue Trading in the last few days. This also works again with already known illegal payment transaction providers such as B2G GmbH, P2P GmbH or StronIT GmbH. Within the legal jurisdiction of the Germans and not in Bulgaria let alone outside the
In December 2018, the German financial market supervisory authority BaFin requested StronIT GmbH to discontinue its illegal payment transaction services. No discernible success. So let us note that the systematic damage to retail investors from around the world by German companies (a) has long been known to the relevant authorities and (b) nothing is being done about it. And there’s still action. That’s incomprehensible. In this respect Bulgaria is not so far away from Germany!
In the blue trading case, UK investors are primarily affected and they wonder why the German authorities allow this. We ask ourselves the same question with FinTelegram.