Cold call ban meant Forex scam was not on regulators’ radar

 

Regulators in Cyprus had no indication that an Israeli permanent resident involved in the Forex sector was suspected of fraud before his arrest early in October, the Sunday Mail has learned.

Until October 6, Cypriot authorities were not given any indication of anything untoward. The two companies he owns in Cyprus had customer complaints against them, but these were not related to the reasons for the suspect’s arrest – a massive fraudulent cold call network – but to aggressive marketing.

In Cyprus, the Cyprus Securities and Exchange Commission (CySEC) cracked down on Forex call centres in 2015. A well-informed source told the newspaper that the fact that such firms do not actively target the Cypriot market should mean that no cold calls are placed to locals. This could explain why the suspect’s companies – Maxiflex and Maxigrid – could go undetected in Cyprus.

Following the announcement of the Israeli’s arrest on October 11, CySEC suspended the operation of the two investment firms.

The suspect is currently free on bail awaiting legal proceedings after Germany sought his extradition.

According to the insider, even if the companies were doing well and had absolutely nothing against them, the fact that the owner was involved in a fraud case elsewhere means they were finished.

The man was arrested at his home in Limassol on October 6, in connection with a cross-border trading fraud investigation…

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