The UTrade broker's owner gets behind bars, but only for 2 weeks

Aviv Talmor, the former owner of UTrade Retail FX, was arrested for two weeks, reported the Israeli media. The reason is the failure to meet the provisions of the UTrade bankruptcy plan of 2016, where Talmor was supposed to default on the agreed payments.

Conditions of conduct

Aviv Talmor, source: LeapRate

According to the concluded agreement, the UTrade owner would have to pay the bankruptcy fund an amount corresponding to approximately 1000 USD every month. Apart from the fact that these payments are relatively small compared to the suspicions of embezzlement of funds, the sum of which is 12 million USD, the condition was not met anyway. Lawyers in Tel Aviv have proven that Talmor has not deposited any significant funds since the bankruptcy of 2016 in the year. As a result, the prosecutor requested arrest for Talmor, or a one-off payment in the amount of 56 000 NIS, equivalent to approximately 15 700 USD.

Ex-owner UTrade refused to pay due to the lack of adequate financial resources, which, if these conditions were met, would enable him to exist normally. As a result, the court approved the prosecutor's request and went to an Israeli prison for two weeks.

UTrade history

In 2016 year Israel Securities Authority (ISA) has announced that an UTrade petition has been launched, which has demonstrated sufficient evidence of crime, including falsification of documents, money laundering, fraud, management of third party funds without the required licenses, or obstruction of the investigation.

The scale of UTrade's operations was very large and the company itself operated for at least a few years to the detriment of hundreds of clients with premeditated intentions. False presentations, aggressive marketing activities and misleading investors enabled the company to acquire 27 million USD from 604 customers from Israel alone. Traders from around the world are also harmed. Aviv Talmor, the main accused, has spent some of the funds raised by the company for his own personal purposes, including other companies he runs. ISA also claims that Talmor did not act alone, and that all managers and UTrade employees helped him in all things, hindering the investigation and concealing incriminating evidence.

So far, the only consequences that Talmor really experienced was home arrest in the 2016 year due to the lack of full charges against him. It is expected that only now will the case get a bigger pace.