The BIGBANG: Birth Moment Of E&G And Its Brands!
E&G network is one of the most famous scandals in Europe that attracted the attention of the across-boarder team of investigators, led by joint Austria-Germany law enforcement agencies.
The investigations that started in Austria and involved international cooperation led to the arrest of many suspects for running fraud that led to thousands upon thousands of victims worldwide.
Many of the victims were people from Western Europe with very little knowledge of how binary options trade worked and were only carried away by the profit the scamers assured they would get in just a few clicks.
Most of the suspects arrested were workers and managers who run the multimillion-euro-scam from multiple call centers in Sofia, the capital of Bulgaria, and Belgrade, the capital of Serbia.
The online scam was operated similarly to the famous Jordan Belfort using manipulative Tradologic software.
Unlike Jordan Belfort, the E&G never involved stock trade or any kind of trade. But the scammers just made the victims believe the money invested in the fake Forex website would make enormous profits while using manipulative software to ensure the illegal business owners were always on the win.
The joint team of cross-border investigators narrowed down to five key suspects, with Gal Barak and Ilan Tzorya being at the top of the pyramid alongside partners from Bulgaria, Russia, Germany, Kosovo, Serbia, and Israel.
While Ilan Tzorya was a 50% behind-the-scene shareholder in the hell-bent business, it later became apparent Gal Barak was in charge of nearly all the operations, leading to his arrest in January 2019, pending his extradition to Austria, which was eventually successful at the end of the same year.
In September 2020, Gal Barak was convicted for money laundering and fraud by a court in Vienna after pleading guilty. Barak was tried for “minor” fraud involving EUR 2.5 million that affected 1300 victims.
Who held the rest of the money? Of course, Ilan Tzorya, the mastermind who “authored” the whole network’s blueprint.
Ilan Tzorya—The Elephant in the House
Based on multiple investigations putting Gal Barak in the spotlight over the E&G network, people often get the false image of Barak being the mastermind, while in reality, he’s just Tzorya’s partner, as it has ever been in any fraud case involving the manipulative Tradologic software.
Tzorya often lures people into lucrative partnerships with enormous effortless gains for being the business’s image, while Tzorya—the true fraud business owner remains behind the scenes, walking free and continuing to run the businesses after the lured partners go to jail. More interestingly, he is the one snitching then to the police for arrests using Frabricatede claims.
And so was the case for Gal Barak, an Israeli-born computer freak with great enthusiasm in servers and computer games, who moved to Sofia, Bulgaria in 2015.
According to our investigations, Barak relocated after knowing Tzorya, who lured him into operating a network of online platforms, with several dozens of shell brands acting as a pipe to channel victims money into Tzorya and his partners’ bank accounts using the manipulative Tradologic platform Tzorya had developed back in 2008 mainly for fraud ventures.
Some of the many websites investigated for fraud in the name of Forex included OptionsStars, OptionStarsGlobal, xTraderFX, and GoldenMarkets. According to the ruling by Judge Christian Bohm at the Vienna District Court, the websites were just but a façade created to simulate a real trading site with no actual investment products sold.
Ilan Tzorya Provided Everything for E&G Startup!
In a typical business partnership, all partners usually contribute in terms of assets or monetary terms. But, business partnerships with Tzorya follow a unique model. They are purely traps to use the partners as a façade to meet behind-the-scene fraud gains.
Tzorya provides everything and leaves his partners to run the business in the front end on a 50-50 revenue share deal, while he controls everything in the back end. With a deal too good to resist, his partners will always give it a try. But the results are life-altering.
According to detailed evidence gathered by our investigative team, the entire complex E&G fraud network started with Ilan Tzorya proposing a business deal to Gal Barak with two irresistible options that all seemed nothing short of good luck.
Below is the English version of the email.
“ It is important to understand that I trust your abilities, so I want to offer you an offer that will be satisfied and also that will make it worth your investment and time and produce a property that is worth a lot of money.
I’m talking about setting up a joint brand.
Tradologic will bring all the knowledge and experience, all the operation, manpower, finances, connections, and support you need.
Option 1: Tradologic pays the marketing expenses and other expenses (approved by you in advance) in the same amount of the monthly Call Center expenses, a division in your company 51% and 49% of Tradologic.
It is important to clarify that in this case, you have no marketing expenses, and you have control over the company and the brand.
Option 2: Tradologic pays all the expenses, also all your expenses, and you get 10% from the company. “
In the end, Barak and Tzorya went with the first option. But, instead of the 51%:49% share deal proposal for Barak and Tzorya’s Tradologic, they sealed a deal for a 50-50 share deal in the brand, and callcenter (E&G), making them equal owners of the fraud business.
The final option the two settled on was just a modified version of option 1, where Ilan’s Tradologic paid the marketing and other costs involved in establishing and operating the call centers.
As explained by Tzorya in the screenshot, his Tradologic company would offer all “Tradologic will bring all the knowledge and experience, all the operation, manpower, finances, connections, and support”that Barak needed for a successful business.
Basically, Barak needed nothing to get the business set up and running.
In our next article, we’ll expose the details of how Ilan Tzorya oversaw all the processes for E&G establishment and operations and much more.