Originally Syndicated on May 10, 2024 @ 3:32 am
The Koblenz Prosecutor’s Office, along with Europol and Eurojust, planned an Action Day in May 2021 to combat a significant Israeli binary options scam network. After more than a year of investigations, the Prosecutor General has filed charges against the operators of the binary options scams centered around KayaFX and KontoFX. Israeli Avi Itzkovich and his associate James Henry Wygodzki are thought to have founded and led the criminal organization. Itzkovich is identified by the prosecution as one of the main offenders.
The Legal Matter
Boiler rooms were run by the cybercrime organisation in Bulgaria. Established in January 2014 in Sofia, Bulgaria, Mercure Group EOOD (formerly known as Rax Media EOOD) was founded by Israeli Avi Itzkovich (Itzkovic) and his Belgian partner James Henry Vigottski (also known as James Henry Wygodski).
Itzkovich and Wygodzki have entered guilty pleas and plan to contribute a sizable amount of assets toward the required reparations. Moreover, charges have been brought against the former chief technology officer, two office managers, boiler room workers, and the two founders for their roles in the cybercrime organisation.
It’s unclear at this time if charges will be brought against the other Israeli management of Mercure Group, the Bulgarian boiler room operator. Furthermore listed in the Bulgarian company registry as managers are Itzkovich and Vygodzki, Maor Ben-Zvi, Daniel Koen, Jonathan Grinfeld, Or Tal Shlomei, Erez Legerbaum, Tal Kerzfeld, Moran Kerimov, Michael Zalk, Eden Sror, Daniel Natan Huluban Mandl, Avraham Aviv Hileli, and Dror Geht.
The Network of Cybercrime
The cybercrime network surrounding KontoFX has grown significantly and encompasses a wide range of businesses and names. As of right now, we are unsure exactly which companies and people the Koblenz public prosecutor’s office will look into and charge in this case.
