After yesterday’s report about investigators from ISA raiding the offices of gFinance.co.il, seven executives has been arrested. The arrested gFinance.co.il Israel owner was out on bail today. Who else were arrested?
10 November, AtoZForex – Suspicions are now official in court that gFinance.co.il has been offering unlicensed portfolio management services between May 2013 and May 2016. The broker is based in Israel an operates through the website www.gFinance.co.il which has been inaccessible since the offices raid. Today it has been reported by the Israeli news that seven executives related to the case got arrested. Zohar Lande represented the suspects in court and they all got bailed.
What are the accusations against suspects?
The individuals that got arrested relating the case were the owner of gFinance.co.il, chairman and CEO: Daniel Swartz, sales manager; Naor Noah head of retention, Jonathan Tourjman team leader, Isaac Babler, Itam Durab, and Maor Jerby - trading coaches. They are charged of fraud under serious conditions as they pressured clients to increase their investments without considering the disastrous influences on their lives. Company owner is also accused of tampering with court procedures.
Investigations are not finished yet and that is why the prosecutors asked for getting bail under limitations for the seven, even their passports are taken away for 180 days. AtoZ Forex reached out to gFinance.co.il and they had no comments right now regarding this matter, but they will announce an official statement in 2 days.
How much bail was paid for the suspects?
The arrested gFinance.co.il Israel owner was out on bail today, around 70k EUR was paid to bail him out. Furthermore, an amount of 34k EUR was paid to bail out Daniel Swarts, the sales manager. For Naor Noah, the head of the retention a similar amount was paid, while Jonathan Tourjman was bailed out for almost 22k EUR. The remaining suspects, who got arrested are the trading coaches, each one of them got bailed out at around 12k per person.
A well oiled scam machine
In July this year, gFinance.co.il request to obtain an ISA license for offering its financial services in Israel got rejected. Now, months later, the prosecutors accused gFinance.co.il of running a “well-oiled scam machine” and using clients that didn't understand much about investments. They made clients to blindly follow false instructions presented by the employees of the firm.
They were greedy to get bonuses at the expense of the clients, they even hid details from clients’ accounts that are relevant. Under the managers’ supervision, these employees exploited clients in their scam to put money in failing investments. Additionally, these employees who already are conscious of the losing percentage still tried to persuade their clients.
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