Investigators of the Israeli regulator conducted a series of searches in the office of iTrader, which shocked the brokerage industry. Seven managers of the broker were arrested for the purpose of investigation, and then released on their own recognizance.
The broker is accused of conducting unlicensed activities in Israel related to finance and financial advice from May 2013 to May 2016. Moreover, the broker’s management forced clients to increase investment amounts, which is also illegal. Thus, the passports of the management were seized. So, the accusation is that the management of iTrader used a well-established fraudulent mechanism in order to force customers to increase investment amounts, and they, in turn, followed the advice of the brokerage company’s employees. But that’s not all. Employees hid the status of their accounts from customers, even in cases where losses began to accumulate on them.
It should be noted that iTrader Israel was one of the most popular brokers before the events, but now it will have to be content with what it has earned.
