ISA Investigates $27 Million Fraud: Utrade faces criminal charges?

ISA has investigated Utrade’s fraudulent activities after exposing the Ponzi scheme back in 2015. Utrade faces criminal charges after ISA’s investigation findings?

19 April, AtoZForex  After disbanding Utrade last year, the Israel Securities Authority (ISA) today recommends the State Prosecutor to press criminal charges against the company’s owner and CEO, Aviv Talmor. The Israel financial regulator released a press release about transferring the investigation file to the State Attorney’s office. Upon reaching out and contacting ISA, their spokesperson gave the confirmation on the news.

Utrade faces criminal charges after ISA’s investigation findings?

The ISA’s Chairman, Prof. Shmuel Hauser, ordered to transfer Utrade’s investigation file to the Tel Aviv District Attorney’s office (Taxation and Economics) for examining the indictments. Moreover, ISA reports that sufficient evidence of criminal offenses was found during the investigation. The offenses include fraudulent receipt and misrepresentation of documents, managing investment portfolio without a license, fraud and noncompliance with ISA’s requirements, and disruption of legal proceedings.

Furthermore, the financial regulator states that this is a serious, complex case. This comment came from ISA because a large number of suspects were involved who acted with great sophistication. However, they did so while disguising the extensive fraudulent activity. According to the investigation, this activity lasted several years and has seriously harmed hundreds of clients in Israel and even around the world.

ISA Exposes Utrade $27 Million Fraud

According to the investigation’s findings, Utrade solicited $27M in Israel from 604 clients between 2012 and 2015. This fund was raised by misleading clients via false representations, counterfeiting, and by using an aggressive and manipulative marketing strategies. The Israeli watchdog also found that Aviv Talmor used tens of millions of NIS for his personal use from the customers’ fund.

The ISA’s investigation also shows that Talmor along with managers and company’s employees acted deliberately to disrupt the investigation procedure. Moreover, the regulator found them to cover up critical evidence after the beginning of the open investigation. Lastly, ISA emphasizes that the State Attorney’s office now has the authority to decide to continue handling the case. Upon contacting the ISA’s Spokesperson, exclusively got the following quote:

“As the investigation body, we only recommended the state prosecutor to press charges against the suspects. However, it will be up to the state prosecutor to decide whether to adopt our recommendation or not.”

Below you can read the original Press Release of Israel Securities Authority (ISA) in Hebrew.

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