Case studies
Financial crime case studies
The following case studies are indicative of IYE’s unique working processes and investigative capabilities.
This year to date, IYE Global has assisted in the recovery or protection of £500m+ of client funds.
Cryptocurrency Scam
United Kingdom | Client Loss: £61,000
Client invested funds in Bexstock, who purportedly conduct trades on behalf of their clients.
Payments were transferred from a bank account to a Binance cryptocurrency wallet and then into the the Bexstock platform.
As the client initially transferred funds from a bank account to convert into cryptocurrency, IYE lawyers identified that culpability rested with the client’s bank, not with the Binance, due to insufficient due diligence being conducted on the initial outgoing transfers.
Client funds were returned in full, plus 8% interest.
Cryptocurrency Scam
United Kingdom | Client Loss: £214,000
Client invested in digitalminers.com and lost his life savings and his pension.
Money was transferred from a UK bank account via Binance.
An inexperienced investor, our client allowed scammers remote access to his computer to setup a Binance account. As ‘trades’ accrued a profit of £750,000, attempts to withdraw funds were met with a £47,000 release fee.
The bank concluded that because funds were transferred to a Binance account in his own name, the Contingent Reimbursement Model Code (CRM Code) does not apply, and our client is therefore liable for the loss.
An IYE investigation exposed details of the sophisticated scam, and with the support of law enforcement agencies and the Financial Ombudsman Service (FOS) presented a strong legal challenge against the bank, notably demonstrating that our client was a victim of criminal deception and the bank was negligent in their legal duty of care to their customer.
The bank repaid £214,000 plus 8% interest.
Forex Trading Scam
United Kingdom | Client Loss: £340,000
Client engaged an online stock market brokerage company named INTERABROKERS.
Interabrokers.com circulated (fake) celebrity endorsed adverts across social media to entice UK investors to their highly sophisticated Meta Trader 4 Platform.
Using ‘police method’ investigation techniques, IYE investigators gathered evidence to prove criminality to a police prosecution standard. This was pivotal to presenting a legal challenge against the client’s bank.
Proof of criminality was important as it placed a culpability issue on any ‘legitimate’ agents who aided the transfer of funds, in this instance the client’s bank.
IYE’s legal team substantiated crime by deception which exposed negligence in banking practices.
Investment Fraud
United Kingdom | Client Loss: £254,000
Our client found an advert online whereby a celebrity was endorsing the services of a business called Intrabroker (IB). IB offered services in relation to stock trading.
Our client was able to see his investment accrue profits using the MetaTrader4 platform IB gave him access to. Able to withdraw small amounts, our client felt confident to invest significant sums.
As is typical in scams of this nature, in order to withdraw funds our client was asked to pay suspicious taxes and release fees.
Using unique investigation methods to acquire intelligence about the scammers, IYE was able to demonstrate to the client’s bank that the investments showed clear characteristics of a scam and that the sums invested were out of character.
IYE’s investigation resulted in the bank refunding £254,000 plus 8% interest.
Cryptocurrency Scam
United Kingdom | Client Loss: Undisclosed
Client invested in a ‘Locked Staking’ proposal with an entity presenting as Anola AI Trading Ltd, based in the Isle of Man.
To commit the scam, Anola AI Trading cloned a legitimate dormant company in the Isle of Man, ‘Anola Trading Limited’,
Early trading allowed a periodic withdrawal of funds, however the ability to withdraw funds ceased, which raised suspicions of fraud.
IYE’s investigation into cryptocurrency-linked deception established culpability in financial institutions who aided the transfer of funds, notably the client’s bank as well as cryptocurrency exchanges Kucoin and Binance.
Able to present unique evidence relating to the Anola AI scam, IYE’s legal team secured the return of client funds in full, plus 8% interest.
Fraud Investigation
United Kingdom | Client Loss: Undisclosed
An ex-professional footballer was conned out of a substantial amount of money some years ago, and despite many assurances over the years from the perpetrator, this had not been resolved.
Our client became aware of similar victims this man had defrauded and asked IYE to investigate. We soon identified a multi-million £ fraud running into three jurisdictions globally. Further enquiries identified ongoing criminal activities with this individual, involving car and credit card crime and a fraudulent carbon credit scam in South America. IYE is working with American and UK based agencies to bring this man to the justice he deserves.
Cybercrime | Reputational Damage
North America
IYE was commissioned to identify the author of a post on an exposé website forum called CheaterLand.
Tasked by a business associate of a man named on the site it proved a challenging case due to the extreme measures the owners of the site go to in order to preserve the anonymity of their authors. IYE investigators identified over 160 leads which were eventually whittled down to 6 hot leads finally identifying one individual living in California, USA.
Further enquiries may be requested into this individual which we are ideally positioned to complete, to gain a better understanding of what they hoped to achieve.
Loss of reputation is often more problematic than the loss of wealth and needs to be fiercely protected when it is attacked unjustifiably.
Financial Instruments
North America | Case Value: $7 billion
In a case lasting over two years and involving exotic financial instruments in America, IYE assisted in the arrest of two individuals who had defrauded clients of over $18m in cash and $7b in CMO’s (collateralised mortgage obligations).
Working with American enforcement agencies two individuals have pleaded guilty on a reduced tariff (but can still get between 20 and 40yrs) and will return to court in the autumn for sentencing. Our American partners are vigorously pursuing the lost funds and have made seizure orders on these criminals’ personal assets to try to recover victim’s money.
Pre-Investment Verification
North America
An established corporate entity in the UK had formed an association over almost two years with an individual in America who represented a well-known company, with a diverse portfolio of business interests. IYE was commissioned to research an investment opportunity the group presented them with, and the individuals connected with it. Investigations, which included physical enquiries in America proved conclusively that this was a scam.
Documents, including financial instruments were proved fraudulent and individuals had numerous criminal associates some of whom were involved in high end car crime, drugs and financial fraud. Contracts the client was about to sign were forensically examined and found to pose a significant risk to the client who was prevented from placing funds at risk. Algorithmic predictive analysis confirmed the scam.
Pre-Investment Verification
North America | Client Funds Protected: $650,000
A private individual client requested investigations into an individual he was about to invest £650,000 with, and with whom he had attended a face to face meeting in America. The individual presented as an accomplished trader and wealth manager with a professional looking website and trading credentials.
This individual was proved to be a criminal with no discernible assets working with a crooked bank officer to encourage victims to deposit funds into his control. Forensic IT investigations identified over 200 similar websites connected to this individual conducting a coordinated scam at multiple locations worldwide. IYE assisted authorities in closing down this operation and in arresting two individuals. Enquiries are ongoing, and more arrests are expected.
Cryptocurrency Scam
United Kingdom | Client Loss: $11,000
Client invested in a ‘Locked Staking’ proposal with an entity presenting as Anola AI Trading Ltd, based in the Isle of Man.
To commit the scam, Anola AI Trading cloned a legitimate dormant company in the Isle of Man, ‘Anola Trading Limited’,
Early trading allowed a periodic withdrawal of funds, however the ability to withdraw funds ceased, which raised suspicions of fraud.
IYE’s investigation into cryptocurrency-linked deception established culpability in financial institutions involved in the process, notably the client’s bank as well as cryptocurrency exchanges Kucoin and Binance.
Able to present unique evidence relating to the Anola AI scam, IYE’s legal team secured the return of client funds.
The above case studies were conducted by our investigations team at IYE Global.
