The Tel Aviv District Court convicted former UTrade chief analyst Roy Cuzin on Sunday of helping the algorithmic-trading company obtain approximately NIS 77 million from some 600 clients through fraud.
Cuzin pleaded guilty to multiple counts of aiding aggravated fraud. Judge Dana Amir convicted him after prosecutors filed an amended indictment setting out a narrower account of his role in the scheme.
The prosecution and defense will jointly ask the court to sentence Cuzin to 22 months in prison and impose a NIS 25,000 fine.
Cuzin served as UTrade’s chief analyst from 2012 to 2015. The company offered automated trading services using an algorithm that selected investments for its clients.
Under its agreements with customers, UTrade was required to return their investments within seven to 10 days of a withdrawal request.
UTrade owed…
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.