Cyprus linked to international network that defrauded 26,000 investors

A joint investigation by Australian broadcaster ABC and OCCRP has uncovered an international investment fraud network that, according to the investigation, obtained around $240 million from more than 26,000 people in 33 countries.

According to the investigation, the Cyprus-based company Allegiant Holdings Ltd, which operated under the trade name Smart Pay, is linked to the network’s Cyprus operations. The company’s sole shareholder is 43-year-old Israeli entrepreneur Shefi Goldberg.

According to the investigators, Smart Pay may have been used to process victims’ payments. In leaked video recordings, employees allegedly entered payment data into the Smart Pay system and internal spreadsheets. However, the investigation does not claim that all $240 million passed through the Cyprus-based company.

Victims were attracted through fake news articles and advertisements. They were promised high returns from investments in oil, gold and cryptocurrencies, including through the purported use of artificial intelligence technologies.

After leaving their contact details, potential clients were contacted by people presenting themselves as brokers or financial advisers. On special platforms, victims were shown supposedly successful trades and growth in the value of their investments. However, in a number of cases, the investigation claims, no actual investments were made.

OCCRP identified 81 investment platforms that presented themselves as independent companies but, according to the investigation, were connected through shared employees, accounting systems and companies through which the money passed.

Two Australians who told investigators about their experiences lost a total of around $625,000. One invested $125,000, after which he was asked to make additional payments when he tried to withdraw the funds. The other transferred more than $500,000, believing he was investing in oil and gold.

Shefi Goldberg denies any involvement in fraud or the unlawful processing of payments. He said that Allegiant Holdings provides services and that, despite being the company’s sole shareholder, he is not involved in its management or day-to-day operations.