ISA and AMF reveal Forex scam of €105 mln

20 April AtoZForex, Vilnius — Today, in a joint press conference of the Israel Police and the Autorité des Marchés Financiers (AMF) a large-scale forex scam was exposed. Reportedly, five Israeli Forex and Binary Options brokers were caught defrauding French investors. The investigation led by the Israel Police and AMF reveal forex scam to be totalling €105 million.

According to the French and Israeli press, the five suspected Israeli Forex and Binary Options brokers are Aston, BForex, 4XP (which is now defunct), Sisma Capital and Tradax. Justice Audi Buresi is leading the case, which involves over 500 victims, 50 cases and 15 reported suspects from Israel. No wonder, the Israel Police and AMF reveal forex scam to be totalling €105 million. Considering that the number of victims might be still rising.

Israel Police and AMF reveal Forex scam details

According to the French press, the alleged Israeli brokers targeted French investors through online ads and telephone calls. Through these communication methods the victims were promised to receive annual returns between 20% up to 88% for numerous of investment products.

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In the first place, the Israeli brokers were not even allowed to solicit French investors, due to the lack the proper AMF authorization. Secondly, the representatives of the Israeli brokers misled the French investors by introducing themselves as working for ING, HSBC or RBS. In reality, the deposits were transferred outside Europe to Israel, Singapore, Georgia, Seychelles, the British Virgin Islands and Belize.

Effective cooperation between ISA and AMF

As the AMF reveal Forex scam details, the Israel Securities Authority (ISA) and the Israel Police haven’t provided their comments yet. Meanwhile, François Molins, the Parisian AMF prosecutor already commented upon the satisfactory cooperation between the two authorities:

“I want to emphasize the excellent cooperation between the authorities and the Israeli police. These sites are linked to organized crime, with highly structured teams and powerful laundering mechanisms”.

Earlier charges against 4XP

Not related to the actual €105 million forex scam, but back in 2007 two employees of 4XP were charged by the police of France. One of these cases, involved the suspicion of money laundering. The 4XP employee was arrested in Paris carrying €6000 in cash of €50 notes, claiming it to have earned in poker games. The other employee was arrested on charges of a hate crime. Aside, these charges on the employees of the broker, the AMF black listed 4XP on the 17th of January 2015.

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