Israeli police collaborate with French regulator; 15 FX company directors under criminal investigation

Rick Steves

4XP, BForex, Sisma Capital, Tradaxa and Aston Invest involved in a massive scam operation that took an average of €210,000 from each victim The world of Forex and Binary Options scams in Israel is being dragged out by a joint collaboration between the French regulator Autorité des Marchés Financiers (AMF) and the Israeli police in […]

4XP, BForex, Sisma Capital, Tradaxa and Aston Invest involved in a massive scam operation that took an average of €210,000 from each victim

The world of Forex and Binary Options scams in Israel is being dragged out by a joint collaboration between the French regulator Autorité des Marchés Financiers (AMF) and the Israeli police in an investigation that targets at least five companies that are the suspected operators of a fraud that totals approximately €105 million. 50 cases, involving at least 500 identified victims are being treated by the Paris prosecutor. Two resulted in the opening of a judicial inquiry.

As reported today by mainstream Israeli news source Calcalist, alleged scams include websites such as the now defunct 4XP, as well as existing companies BForex, Sisma Capital, Tradaxa and Aston Invest, amounting to a total of 15 reported suspects based in Israel, in an investigation headed by Justice Audi Buresi.

In a joint press conference of the AMF, Parisian prosecutor François Molins said: “I want to emphasize the excellent cooperation between the authorities and the Israeli police”, adding that “These sites are linked to organized crime, with highly structured teams and powerful laundering mechanisms”.

4XP (Forex Place) executives Benny Abramov, Yair Abramov and Shimon Choen, based in Ramat Gan, gave no comments regarding the investigation. Bforex, also based in a small village in the south of Israel called Mitzpe Ramon and with call center operations in Herzliya, but owned by a company with a similar name registered in the UK, is owned by Director Tzachi Rosenbaum, that didn’t provide any comment.

jdd

The unregulated brokerages in question have been accused of operating without regulatory approval in any jurisdiction, and soliciting clients either online or by phone, promising annual returns of 20%, 30%, and even 88%, for derivatives trading, most commonly Foreign Exchange, with certain investment products guaranteeing the total amount invested during the first year.

Investigators have alleged that they disguised themselves as representatives of the company’s offices in London or Paris to induce a more credible approach and have them convinced that the money would be transferred to European banks such as ING, RBS or HSBC. Instead, it was moved outside the EU, mostly to Israel, Georgia or Singapore, and offshore tax havens Seychelles, Belize and the British Virgin Islands.

Given that the French prosecutor said that the investigations ongoing regard to 50 cases, 500 victims, and a total sum of €105 million, then the average scam must have been worth €210,000. French economic daily ´Les Echo’ estimates the volume ranges from €100,000 and €500,000 for each victim.

Two employees at 4XP were already charged by the French police, according to the French press. One of them was involved in a hate crime against a Palestinian taxi driver in 2007. The second employee, Jeremias C., was arrested in a suite of a luxury hotel in Paris last November. He was carrying €6,000 in cash in €50 bills, claiming he earned it playing poker. He paid bail of €80,000.

Although the Israeli police and the Israel Securities Authority have provided no comment on the investigation, as the current international memorandum of understanding requires Israel officials to help foreign authorities in cases of Israel-related offenses.

 

Read this next

Retail FX

Midas raises $45 million to expand brokerage beyond Turkey

Midas has raised $45 million in equity funding to expand and roll out three new products: cryptocurrency trading, mutual funds, and savings accounts.

Institutional FX

Appital launches liquidity creation functionality for buyside

“In today’s fragmented market, the likelihood of having natural market contras at size, in multiple days ADV, which also match price ambitions, is incredibly unlikely. What’s more, matching technology alone is no longer enough.”

Crypto Insider

Shiba Inu Secures $12 Million Investment to Advance its Blockchain Technology and Expand Global Ecosystem

Shiba Inu, an expansive digital assets ecosystem constructed on the Ethereum blockchain, featuring the globally recognized cryptocurrency $SHIB, today proudly announced securing a $12 million investment.

Retail FX

99.81% of NAGA shareholders approve merger with CAPEX.com

“Securing this vote will allow us, after the regulatory approvals for the merger, to execute the new business plan. We are expanding the global reach of NAGA and upgrading the SuperApp to offer a true all-in-one user experience, unique in the world of Fintech.”

Market News

Chinese Insurance Giant Leads Market in Face of US Tech Slump

Chinese insurer China Pacific Insurance has emerged as a standout performer amidst the recent flurry of activity in the Asia Pacific markets, capturing the attention of investors and traders alike.

Retail FX

Public strikes deal to acquire Stocktwits

“After launching bonds, a high-yield cash account, and options trading, Public’s platform has earned the right to be the primary brokerage platform for many investors, and we look forward to offering the full breadth of our platform to Stocktwits customers.”

blockdag

BlockDAG’s Impressive 30,000x ROI Potential and Moon-Based Keynote Captivate Solana And Bitcoin Cash Crypto Investors

Discover BlockDAG’s impressive moon keynote launch and its promise of a 30,000x ROI that is drawing investors from Solana and Bitcoin Cash.

Market News

This is it, the USD Strength has Come to an End

In the aftermath of Israel’s retaliatory strikes in Iran, the currency markets have entered a phase of heightened volatility, reflecting the intricate interplay between geopolitical tensions and economic fundamentals.

blockdag

BlockDAG Leads DeFi Innovation with $19M Presale, Overshadowing Cardano and Binance Coin With 30,000x ROI and DAG Structure

Learn about BlockDAG’s growth in its presale, surpassing $19M, and its impact on the DeFi landscape, overshadowing movements in Cardano and Binance Coin (BNB).

<