Aviv Telmore, The Owner Of UTrade, Was Convicted in Israel of $22 Million Fraud

He was charged in 2018.

The business now owes deceived clients $12 million.

Aviv Telmore, the founder and CEO of the algo-trading business UTrade, has been convicted by an Israeli court of cheating investors out of NIS 77 million ($22 million), among other things.

According to the local newspaper Globes, Telmore was convicted of fraud under aggravating circumstances, theft by an authorized person, money laundering, and managing an investment portfolio without a license on Tuesday morning.

Telmore was originally charged by Israeli authorities in December 2018, resulting in a lengthy trial. On November 24, the court will hear arguments for the sentence.

A Massive Scam

The investigation against Telmore and UTrade began in 2015 when many investors filed a complaint with the authorities, which was followed by an examination.

According to the original charge, UTrade gathered NIS 100 million from around 600 customers between 2012 and 2015, offering an annual return of 15 to 20%. Though the company's clientele were mostly Israelis, a prior revelation indicated that the corporation also sought overseas clients.

Furthermore, the court said that the corporation could not offer any rationale for the high profits and that they were “false statements.” Furthermore, he said that the misdeeds' actions show that its trading operations were losing money.

The firm first stipulated the separation of consumer cash and corporate revenues. Customer deposits, on the other hand, were utilized for operating expenditures and even for strategic growth via acquisition. It also paid off previous clients with new customers' monies, making it a typical Ponzi scam.

Furthermore, the court accepted the evidence of 169 UTrade customers who said that they would not have invested if they had known the firm would spend their cash for operating purposes. The fraudulent company currently owes investors $12 million.

Ma'ayan Talmor, Aviv Telmore's sister, pleaded guilty to conspiracy to commit a crime. She was fined NIS 10,000 and sentenced to probation. Furthermore, the authorities indicted Roy Cuzin, UTrade's Chief Analyst, but he left the country, causing the proceedings to be halted.

Trading with Utrade is risky since it is an unlicensed broker. Furthermore, the firm has been accused of being a hoax. We researched the firm and found no permission or registration of the address, therefore the company seems to be very suspect and may be operating from a different location.

Utrade is a forex and CFD broker owned and run by Callpoint ltd S.R.L. in Bucharest, Romania. The broker claims to be regulated by the majority of significant authorities, including the US NFA, UK FCA, Australian ASIC (ASIC-Regulated MEXC), Japanese FSA, German BaFin, and the SFC in Hong Kong.

Despite the fact that the firm is not registered with any of these authorities and has even been banned by the Financial Conduct Authority in the United Kingdom, we do not encourage doing business with a company that does not have a license and is not regulated.

The broker must have EUR 125,000 in capital to receive an STP FCA license.

Furthermore, to get this form of license, the broker must have a physical office in the United Kingdom. The Financial Services Compensation Scheme protects all customers of FCA-regulated brokers.

About FCA

The Financial Conduct Authority (FCA) is a financial regulatory organization in the United Kingdom that functions independently of the UK government and is funded by financial services sector fees. The Financial Services Act 2012 gained royal assent on December 19, 2012, and went into effect on April 1, 2013. The Act established a new financial services regulatory framework and disbanded the Financial Services Authority. The FCA supervises financial enterprises that provide consumer services and ensures the integrity of the UK's financial markets. It focuses on the regulation of retail and wholesale financial services businesses' behavior.

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