Huge Fraud

Suspicion of a huge fraud: tens of millions of euros were laundered

Suspects have been arrested by the police on suspicion of providing infrastructure for committing offenses related to money laundering in Forex trading offices worldwide and laundering tens of millions of euros of customers' money through complex company structures. They will be brought for an extension of their detention hearing

Illustration (photo: Flash 90)

Yesterday (Monday), the police arrested several suspects on suspicion of defrauding investors in the network and providing infrastructure for committing offenses in hundreds of offices of a global Forex company. According to an Israel Police statement, the offenses involved tens of millions of euros and were perpetrated by criminal organizations both in Israel and abroad.

The investigation reveals that the suspects provided infrastructure for conducting offenses in internet trading platforms to Forex offices worldwide, including in Israel. The investigation further indicates that the infrastructure supplied by the suspects was used by criminal organizations, both domestically and internationally, operating from investment offices to defraud victims around the world.

According to the investigation, the suspects contacted victims worldwide through sales representatives and presented themselves as financial traders dealing in various financial instruments, including cryptocurrencies, Forex, and more. These contacts were made through call centers located in different countries around the world, including Bulgaria, Serbia, Ukraine, Georgia, Kosovo, and Israel.

The victims' money was transferred to cover companies

Additionally, in the police statement, it is mentioned that "the victims transferred payments to the accounts of the suspects after being promised high profits, with the suspects presenting a false presentation claiming that these funds would be used for trading in the financial instruments of their choice, as per the agents' recommendations. However, in reality, the money paid accumulated in the accounts of the suspects and the suspected companies and became a source of income for them."

Furthermore, it is stated in the investigation that the suspects transferred the victims' money to bank accounts in various countries, including Germany, the Czech Republic, and Hungary. These accounts were opened and operated by cover companies, financial agents, or payment service providers. Representatives from the state of Bavaria also participated in the investigation and identified five groups of suspects who had been operating fraudulent platforms since 2018. Additionally, the German investigators mention that they collected numerous testimonies from victims in connection with offenses totaling tens of millions of euros.

During the arrests, 6 suspects were apprehended, and many other suspects were detained for questioning, all of whom are being investigated at the unit's offices. Discussions regarding the extension of their detention will take place at the Rishon LeZion Magistrate's Court.

Forex fraud offences

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