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#CyberScam Warning – Gal Barak operates the EZInvest Broker Scam

Last updated on August 14, 2019

An EU arrest warrant was issued against the Israeli Gal Barak at the beginning of 2019. Gal Barak and his partners Marina Andreeva, Kfir Levy, Itzik Gellet, and Michelangelo M. Racele operated E&G Bulgaria in Sofia with subsidiaries and boiler rooms Bulgaria, Serbia and Bosnia-Herzegovina. After more than a year of investigation, the EU authorities strongly suspected that Gal Barak and his partners were committing financial crimes, money laundering, and aggravated investment fraud.

Consequently, Gal Barak and one of his partners, the German Uwe Lenhoff, were arrested as part of an international police operation. While Lenhoff is still in custody in Germany and awaiting prosecution together with four other accused persons, Gal Barak was released into house arrest in Sofia. The Austrian authorities have been trying to get him extradited without success for months. He, on the other hand, continues to operate his illegal boiler rooms and attacks retail investors in the EU.

Delayed extradition and hundreds of millions of damages

Several court hearings in Sofia for the extradition of Gal Barak (Hebrew גל ברק) to Austria have already been postponed and adjourned several times. This also happened with the last one which was scheduled for 7 August 2019 and again adjourned. Allegedly, a new Bulgarian public prosecutor had not yet read enough into the file. After almost one year of this request for extradition, this is more of a fool’s joke on the part of the Bulgarian authorities.

The extradition of Gal Barak to Austria is important for the damaged retail investors. Within the EU, the Austrian authorities are coordinating investigations into the vast investment fraud involving Gal Barak‘s broker scams and boiler rooms. Tens of thousands of EU citizens have lost tens of millions to Barak scams such as XTRaderFX, SafeMarkets, OptionStarsGlobal, Golden Markets or CryptoMarkets. These broker scams were operated by the boiler rooms of E&G Bulgaria. These Boiler Rooms also “managed” scams of other operators in addition to Barak’s scams.

A former partner of Gal Barak stated in an affidavit that more than €200 million per year were stolen from retail investors by E&G Bulgaria and the broker scams they operated.

Gal Barak continues illicit business

During the last days, people from FinTelegram were on-site in Bulgaria and Serbia. In both countries, E&G Bulgaria used to operate boiler rooms for scams. Not only their own scams are operated these boiler rooms, but also the scams of other operators. One of these “customers” of Gal Barak currently s Tas Evan, who lives in the USA and operates the broker scam EZInvest (www.ezinvest.com) via his WGM Services Limited. The international edition of FinTelegram has already reported about the background of EZInvest.

It is currently not clear whether the boiler room behind EZInvest belongs to E&G Bulgaria or a new company has been established. We, however, have been able to identify more of Barak’s lieutenants around the EZInvest scheme. The two masterminds are still Gal Barak and his partner Marina Andreeva. In addition, the following Israelis are responsible for EZInvest scams:

Gal Barak and PandaTS

The connection between Gal Barak and the Israeli white-label trading software provider PandaTS seems also to be of interest at this point. With this platform the illegal and fraudulent brokers scams XTraderFX or SafeMarkets were operated. These were closed after Barak’s arrest. Now Barak focuses on his boiler room activities.

According to several suspects around Gal Barak – among them Uwe Lenhoff, who is in custody – Gal Barak has claimed to be a PandaTS shareholder and is even planning to increase his investment there. In a recent conversation with PandaTS founder Maor Lahav, he said he was the controlling shareholder of PandaTS. He did not want to disclose the names of the other shareholders. So we cannot finally confirm that Gal Barak holds shares in PandaTS.

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