The swindling machine iTrader – Israel prosecutors finally start to take actions against the binary options scheme

Maccabi Tel Aviv basketball players promoting iTrader
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Almost 3 years after the office raid and the temporary arrest of seven people around the Israeli binary options scheme iTrader, the matter is gradually coming to trial. Israel’s prosecutors have summoned Ido Fishman, owner and CEO of the Israel-registered Gal Media Trade Ltd for a pre-indictment hearing. Gal Media Trade was a platform for binary options trading and operated under the brand iTrader the Israeli Globes reported. The State Attorney’s Office taxation and economic section accuses Fischman and his team of aggravated fraud and providing investment advice without a license. The prosecutors also indicate that a similar notice was given to the company’s customer relations managers and a number of boiler room agents (sales representative).

Blind eyed prosecutors

Incredibly sad but true. This is the first case of a possible indictment against operators of a binary options platform in Israel Globes reports. In fact, the global fraud industry around binary options was invented in Israel and had its center in Israel until the binary options were banned in 2017. Tel Aviv was the Silicon Valley of binary options. The globally acclaimed start-up nation Israel was essentially funded by the fraud of retail investors with binary options around the world.

In the U.S., first convictions of Israeli binary options fraudsters have already been pronounced. Most recently, five Israeli citizens have pleaded guilty to fraud in the Yukom case involving Lee Elbaz. The trial ended on Friday. In Europe, authorities in numerous countries are investigating binary options fraudsters. Most of them are Israeli citizens like David Cartu, Guy Galboiz or Gal Barak, who established his boiler rooms in Bulgaria, Serbia, and Bosnia-Herzegowina. The Israeli prosecutors have so far only watched and done next to nothing about the investment fraud of their citizens against retail investors in North America, Europe, and Asia. A disgrace to the proud nation of Israel.

The Israeli authorities apparently only took action against Gal Media Trade and iTrader because iTrader (www.itrader.co.il) also targeted Israeli retail investors and, in the opinion of the public prosecutors, deceived them.

The iTrader Case – enforcement action and pre-indictment

On November 8, 2016, the Israel Securities Authorities (ISA) carried out a raid on the Ramat Gan offices of iTrader, a binary options scheme that addressed retail investors in Israel. Seven men were arrested on suspicion of aggravated fraud, securities violations, and other crimes:

  • Ido Fishman, CEO
  • Daniel Swartz, sales manager
  • Naor Noah, head of retention management
  • Jonathan Tourjman, team leader
  • Itzhak Babler, boiler room agent
  • Itam Durab, boiler room agent
  • Maor Jerby, boiler room agent

All seven were released on bail but prohibited from leaving the country while the authorities continued to investigate the case.

It took the prosecution nearly 3 years to bring iTrader to court. According to the Israeli prosecutors, iTrader offered operated a binary options trading platform between 2013-2016. During this period, thousands of customers conducted transactions on iTrader totaling hundreds of millions of shekels. According to the statement of suspicion sent to the suspects, company representatives exerted unfair pressure on customers and took advantage of their lack of experience and understanding of binary options trading.

The suspects are accused of using aggressive and fraudulent sales techniques, misleading practices, and concealing important information from customers. For example, according to the statement, company representatives made false presentations to customers about the risks and opportunities involved in binary options trading, lied about their experience and success in trading and managing customer portfolios, and exerted pressure on customers to use trading techniques that required investment of large resources, thereby causing them huge losses. Some of these methods were reported in “Globes” in 2017.

According to Globes, the prosecutors also charge Fishman and his employees with violations against the Israeli securities law as the provided advice without a license.

The Defense Line

The Israeli Adv. Ronen Rosenblum, who represents Ido Fishman and the company is convinced that he can prove the innocence of his clients.

We are confident that after studying and examining the evidence we will be able to convince the State Attorney’s office that its conduct and conduct were lawful and that these are not criminal acts. 

Adv. Ronen Rosenblum

Adv. Amit Ben-Arro of Ben-Arroya-Wolf’s office, who represents a number of former employees of the company, stated that the prosecutors’ evidence has to be thoroughly studied.

In any case, the employees deny the commission of any offense, and we are convinced that after presenting the position at the hearing – the prosecutor’s office will accept it as well.

Amit Ben-Arro

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