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The Veltyco Drama Continues – No Monies From Founder And Office Raid

Veltyco Group PLC on Wednesday said it raised GBP500,000 funds via the issue of 3.3 million shares at 15 pence each subscribed by existing investors. The firm will use the subscription proceeds to provide general working capital to the company and to pursue the recovery of overdue receivable balances owed to the group by companies of its founder Uwe LENHOFF. Furthermore, the company announced the resignment of the non-executive director Gilles OHANA and the appointment of Paul DUFFEN.

No Monies From Lenhoff

In the press release, VELTYCO said that no further payments having been received from either Celestial Trading Limited (“Celestial”) or Altair Entertainment N.V. (“Altair”). Both companies are beneficially owned by Uwe LENHOFF. Of the entire balance owed to the company, EUR9.3 million remains outstanding in respect of the online financial trading vertical, with EUR6.8 million being overdue from Celestial and EUR2.5 million being overdue from Altair.

“Given the above, the board is taking appropriate legal action in respect of recovering these outstanding amounts. However, there can be no certainty that the group will be able to recover all, or any, of the monies due to it from Celestial and/or Altair,” Veltyco said.

Veltyco press release, Jan 30, 2018

FinTelegram reached out to one of the largest shareholder of VELTYCO. He was surprised to learn about the changes and developments via press release.

Office Raid Of Cologne

In February 2018, a German court ordered the raid of offices of the German B2G GmbH which operated Option888, a fraudulent and illegally operated binary options site in the VELTYCO network of companies. Unfortunately, neither VELTYCO nor its founder and then director Uwe LENHOFF have disclosed this important news. Moreover, it was Celestial Trading Limited and Altair Entertainment which were presented as the official operator on the Option888 site. VELTYCO as the marketing partner of Option888 was responsible to promote this illegal site and hence has to be qualified as a co-conspirator in this scheme. And it’s exactly these two companies of Uwe LENHOFF that owe some €10m to VELTYCO. As a matter of fact, the revenue achieved with Option888 is to be qualified as illicit revenue stream.

Office Raid In Sofia

According to documents available to FinTelegram, the police raided the offices of VELTYCO subsidiary VELTY BULGARIA. Evidently, the enforcement agencies were looking for evidence on the Option888 fraud scheme Uwe LENHOFF and VELTYCO GROUP have been involved in.

We do not yet have any detailed information on the results of the office raid. In any way, we recommend investors of Option888 to file their claim with our EFRI Campaign. We reached out to a VELTYCO shareholder involved in the Bulgarian business. He confirmed ongoing investigations and actions conducted by European enforcement agencies. However, he said that he has now been aware of the fraudulent activities of the former binary options schemes Option888. He offered full support to the authorities to investigate the case and compensate victims, he said.

File Your Claim

Illegally operating broker schemes and their boiler rooms are part of fast-growing global cybercrime activities. Millions of investors are defrauded by those broker sites losing billions of euros every year. Hence, it is important to warn investors of such illicit sites. If you are a victim of an illegally operating broker site such as Tradeinvest90, Option888, XMarkets, XTraderFX, GToptions, StoxMarket, Bluetrading, FXTrade777, or KayaFX please file your claim and report activities via our whistleblower system:

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