Bulgaria Takes Down Hedge Fund Scammers Who Defrauded Germans and Greeks of €10 Million
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A Major Crackdown on Online Investment Fraud
Bulgarian authorities, supported by Europol and Eurojust, have dismantled a network of scammers who targeted victims in Germany and Greece, resulting in the arrest of one suspect and the seizure of electronic equipment, financial information, and recordings.
The Fraudulent Scheme
The fraudulent scheme involved two call centers in Bulgaria that posed as legitimate investment firms, offering fake hedge fund opportunities to unsuspecting investors. Scammers would contact potential victims, promising significant profits, and convince them to invest substantial sums of money. However, once the investments were made, the scammers disappeared with the funds, leaving hundreds of victims with financial losses.
Investigation and Arrest
The Bulgarian authorities launched an investigation in 2019 after receiving complaints from German and Greek investors who had lost all their deposits. Eurojust set up a joint investigation team (JIT) between Bulgaria, Germany, Greece, Serbia, and Europol to coordinate efforts and identify the perpetrators. Following five coordination meetings with Europol and Eurojust, JIT members were able to locate the two fraudulent call centers in Bulgaria.
Joint Action Day
The Bulgarian police, supported by Serbian authorities, dismantled both centers on January 26, marking a major success for international cooperation in combating online investment fraud. This is not the first time such a scheme has been uncovered in Bulgaria; a similar operation led to the dismantling of two other call centers in 2020.
International Cooperation
The operation involved law enforcement agencies from Bulgaria, Germany, Greece, and Serbia, as well as judicial authorities from these countries. The European Multidisciplinary Platform Against Criminal Threats (EMPACT) also provided support for the operation.
Europol deployed experts on the ground in Bulgaria to facilitate information exchange and provide real-time operational analysis and technical expertise. Eurojust coordinated the joint action day and provided cross-border judicial support.
Estimated Losses
The total amount lost by victims is estimated at €10 million, making this one of the largest hedge fund scams uncovered in recent years.
Warning and Conclusion
Online investment fraud remains a significant threat to investors, particularly those who are not adequately informed about the risks involved. This operation highlights the importance of international cooperation and joint efforts to combat organized crime and protect citizens from financial fraud.
- The Bulgarian authorities have warned that online investment fraud is a significant threat to investors.
- The estimated total loss by victims is €10 million.
- International cooperation between law enforcement agencies and judicial authorities is crucial in combating online investment fraud.
- Online investment fraud can result in significant financial losses for unsuspecting investors.