The international search for the missing UTrade CEO, Aviv Talmor has ended as he returned to Israel today to face investigators and was arrested. According to Tel-Aviv court documents obtained by Finance Magnates, Talmor is considered a flight risk after not showing up for interrogation for two months, and so the court granted the request of the prosecution to detain the suspect for four days.
Talmor’s lawyer agreed to the arrest request but told the court that he still maintains his innocence of any of the accusations against him. Furthermore, he says that they were not aware of the repeated attempts to bring Talmor to report for interrogation and that he just wanted to finish his affairs in London before returning to Israel.
Speaking recently with Finance Magnates, Talmor stated that he “didn’t steal any money.”
Talmor is suspected of managing the funds of 600 investors without the required license. Additionally he allegedly made false claims to clients that his company’s operation does not require it to be licensed according to the existing regulatory framework. Moreover, despite making a commitment to stop its operation, his company continued to accept new clients and used their funds to pay off its older clients.
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As we reported in December an Israeli Securities Authority (ISA) audit revealed that since the ISA banned the brokerage from signing new clients last May, it nonetheless acquired 44 new clients, pouring $3.5 million into UTrade Premium’s bank account.
“We suspect UTrade Premium investors’ funds were transferred from the company’s account for other purposes than the agreed upon,” an ISA report noted. “In addition, we suspect that UTrade Premium is looking for new investors, though the company will not be able to restore investors’ funds out of known insolvency.”
Liquidity concerns regarding UTrade Premium arose, with the amount of actual cash in the bank being much less then the brokerage’s financial report claims: $77,000 compared with the $12 million reported.
“Auditing reveals UTrade Premium’s liquidity hardship, while traders asking for their cash back didn’t receive it [at all], or are receiving funds back bit by bit, through forced layout plans imposed by the company, which are expected not to be fully completed considering its current financial status”, ISA appeal stated.