Ilan Tzorya’s Fraud-enabling Software (Part 1): Why Hasn’t It Been Banned Despite Defrauding Victims Millions of Euros
Ilan Tzorya’s massive fraud operations couldn’t have succeeded without the controversial Tradologic software, which the fraud insiders term as the loss mitigating software. In fact, without the software, we couldn’t have been discussing Ilan Tzorya’s massive fraud ecosystem spread across Europe and beyond.
The joint Austria-Germany investigators simulated how the software was used to lure the victims into significant losses by investing in the websites. Using the software, the investigators noted that it could alter the outcome of the supposedly “binary options trade” and make unsuspecting investors lose their state regardless of their choices.
According to the indictment details, the Tradologic software developed by Ilan Tzorya and advanced by Michael Golod and other accomplices was the basis of the individual “brands” and made the massive fraud possible in the first place.
“The software was developed in such a way that the ‘customers’ of the Trading in a wide variety of derivative investment products (especially binary options, CFDs, Forex, and cryptocurrencies) could be faked. Indeed happened, however, all trades exclusively via the software platforms without the involvement of third parties,” the investigation team stated in Tzorya’s indictment.
The investigation revealed that the software also offered considerable opportunities to manipulate individuals’ trades as well as the prices underlying such trades while also making it possible for Tzorya and his team of fraudsters to carry out comprehensive management of each customer’s deposit.
No Actual Trade Took Place—Just a Façade Created to Deceive Customers
Despite promising their ‘customers’ huge returns on their deposits, no actual trade occurred. Instead, Tzorya and his accomplices created a façade that simulated the real trading interphase to lure the victims into believing the entire establishment was genuine.
According to investigators, the money deposited by the victims on the fake trading website was directly wired into Tzorya’s business accounts which were largely held in trust.
“The market prices of the individual fictitious trades were made with the help of the software by the agents or on their prompt manipulated using the “Risk Tools.” Using the “Cancel” and “Close” buttons, the agents could prematurely cancel or end active trades of the victims,” the investigators noted.
This manipulations were used to control the trade. Therefore, depending on the phase of the “Business relationship” with the victims, targeted gains and losses were shown. At the beginning of “customer service,” a “retention agent” made profits feigned to increase the confidence in the “fire” and the victims in such a way as to entice further deposits.
At a later point in time, at least in the case of payment requests or insufficient willingness of the victims to pay in, controlled losing trades were carried out. In addition, there was an automated risk management system from the start, which ensured there were no high profits for the “customers.”
At the center of the software was the database, in which all the data that were used during the operation of the individual “brands” generated were stored. The software modules included a trading platform, customer management, and an accounting module.
Despite causing massive losses to unsuspecting customers who deposited vast sums of money hoping for insanely high returns in record time, the fraud-enabling software still remains operational in the digital economy with no punitive actions taken against it and its fraudulent owner, Ilan Tzorya.
If not for corruption, why is such incriminating software allowed in Europe, the US, Japan, and beyond? Why has the same software been granted patents? And Why has Ilan Tzorya not been arrested for using such software to scam millions of innocent people?
The entire syndicate is allegedly attributed to deep-rooted corruption within the investigation agencies in Austria and Germany, who uncovered the entire mess and did little to hold the masterminds responsible.
Read our next articles for in-depth information on how Ilan Tzorya participated in the development of the software, the software’s components, and individual fraudulent brands.