Israeli police arrested four Israelis for allegedly defrauding German citizens of millions of euros in sham foreign currency transactions.
The victims invested large sums of shares via call centers but later discovered that no corresponding transaction had taken place. A company in Petah Tikva near Tel Aviv is at the center of the investigation.
German authorities requested Israeli police to carry out the arrests while accounts amounting to 1.1 million euros were also frozen as part of the investigation. Eleven other people were released after questioning, police said.
This follows further international cooperation with Israeli police on crime dealing with foreign currency exchange as another fraud network was uncovered earlier this month in Tel Aviv. A joint investigation with the FBI saw the arrest of 26 Israelis and their computers seized as evidence.
- After FBI Tip-off, 26 Israelis Arrested for Forex Defrauding of U.S. Citizens
- Israeli Businessman Embroiled in Debt Shot and Killed
- Israeli Police Seek Wider Powers to Search Houses, Confiscate CCTV Without Warrants
Foreign exchange fraud, otherwise known as forex trading fraud, is a trading scheme intended to defraud currency traders by persuading them that they can gain high profits by trading in the foreign exchange market.