The Tel Aviv District Court in Israel found former UTrade chief analyst Roy Kuzin guilty of aiding and abetting fraud under aggravated circumstances. According to the Jerusalem Post, he helped the company fraudulently obtain about 77 million New Israeli shekels from approximately 600 clients.
Kuzin admitted to several counts of aiding and abetting fraud as part of a plea agreement. Judge Dana Amir entered the conviction after the prosecution submitted an amended indictment with a narrower description of his role in the scheme.
Proposed sentence
The prosecution and defense will jointly ask the court to sentence Kuzin to 22 months in prison and a fine of 25,000 shekels. He served as UTrade’s chief analyst from 2012 to 2015.
UTrade offered automated trading services: an algorithm selected investments on behalf of clients. Under the contracts, the company was required to return invested funds within seven to 10 days after a withdrawal request.
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Background of the UTrade case
According to the amended indictment, UTrade used false claims and concealed important information about its operations while recruiting clients. Potential clients were misled about the separation of client and company funds, possible conflicts of interest, and regulatory oversight.
Kuzin admitted that he helped present clients with false data on UTrade’s past investment returns. As stated in the indictment, he managed the company’s trading program, had access to its trading accounts, and knew that these figures did not reflect actual performance results.
In 2015, UTrade faced financial difficulties because a significant portion of client funds was used for company expenses and other investments rather than trading. Kuzin also helped the company’s owner and manager, Aviv Talmor, persuade dozens of clients to agree to multi-month repayment plans. The delays were explained by temporary technical problems, without disclosing the company’s financial condition.
By the end of 2015, UTrade owed clients about 42 million shekels, while the client account held approximately 173,000 shekels and $50,000. Talmor was previously convicted in this case: in 2024, the Supreme Court increased his prison term from four to five years and upheld a fine of 250,000 shekels.
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