Background on PAYVISION B.V. and EFRI`s Legal Actions
In the summer of 2018, internal documents from a major international cybercrime network were made public due to internal conflicts, exposing the operations of the fraudulent organization led by Gal Barak and Uwe Lenhoff. These documents, later handed over to Austrian law enforcement, enabled the arrest and prosecution of Barak and Lenhoff, with ongoing criminal trials in Austria and Germany.
According to criminal court files in their cases, PAYVISION B.V., a Dutch-regulated payment institution and subsidiary of ING NV (one of Europe’s largest banks), allegedly onboarded shell companies to card systems like Mastercard and VISA. This enabled Barak and Lenhoff’s organizations to defraud tens of thousands of European consumers, resulting in estimated losses exceeding €200 million, based on prosecutorial findings.
Further investigations revealed that PAYVISION B.V. not only served as the acquiring payment processor for Barak and Lenhoff’s criminal organizations but also processed payments for other high-profile scams, including 24option, and Algotechs/BEALGO, alongside questionable U.S. companies in sectors like cannabis and adult content. As a regulated institution, PAYVISION was expected to act as a gatekeeper to prevent criminal access but instead allegedly facilitated cybercriminal activities.
As of October 30, 2024, EFRI represents about 220 European victims who collectively suffered €11,5 million in losses due to PAYVISION’s non-compliance with KYC regulations.
EFRI’s Actions Against PAYVISION B.V.
EFRI initiated several actions based on extensive research into PAYVISION’s alleged misconduct:
- June 27, 2019: First claim letter sent to PAYVISION B.V., detailing PAYVISION’s support for Barak, Lenhoff, and associated scams (e.g., Option888, xtraderfx). The letter emphasized PAYVISION’s liability for merchants’ wrongdoing and requested refunds for EFRI-represented victims.
- September 16, 2019: Submitted a preliminary money laundering complaint to the Dutch prosecution office, AMF, and ESMA, outlining PAYVISION’s alleged facilitation of fraudulent schemes.
- December 16, 2019: Sent a money laundering complaint to De Nederlandsche Bank (DNB), the Dutch supervisory authority for PAYVISION. DNB confirmed receipt on December 30, 2019, but did not provide further information.
- October 5 and 19, 2020: Sent follow-up claim letters to PAYVISION B.V., reiterating the request for victim refunds (no response received).
- October 23, 2020: EFRI sent additional documentation regarding PAYVISION’s money laundering practices to DNB. DNB acknowledged receipt on October 26, 2020.
- February 26, 2021: EFRI forwarded further material from criminal court files in Austria and Germany to the Dutch FIU, AFM, and DNB.
- March 18, 2021: Submitted extensive documentation about PAYVISION B.V.’s operations to DNB, which confirmed receipt the same day.
- April 30, 2021: Filed a money laundering complaint against PAYVISION, including former directors Rudolf Booker and Cheng Liem Li, with the prosecution offices handling Barak’s cases in Austria (Vienna) and Germany (Bamberg).
- September 1, 2021: EFRI contacted the Dutch Ombudsman seeking assistance, who advised contacting ING Bank, as they were not directly responsible for PAYVISION’s oversight.
- September 2021: An Austrian victim of Barak initiated a civil lawsuit against PAYVISION B.V. in Salzburg, Austria. EFRI delivered all material, including organizing an Austrian lawyer for the case, which was settled in July 2024.
- Spring 2022: An Austrian victim of Lenhoff initiated a civil lawsuit against PAYVISION B.V. in Vienna, Austria, with legal assistance arranged by EFRI. This case was settled in spring 2024.
- Summer 2022: Another Barak victim filed a civil suit against PAYVISION B.V. in Graz, Austria. The case, supported by EFRI and represented by an Austrian lawyer, also settled in spring 2024, by now also got settled.
- February 3, 2022: EFRI emailed DNB regarding PAYVISION’s involvement in U.S. civil cases.
- March 22, 2022: EFRI sent information on PAYVISION’s involvement in U.S. cases to the German prosecutor.
- November 4, 2022: EFRI informed DNB about a witness statement from a shell company manager involved in Barak’s scams.
- December 1, 2022: A German victim initiated a lawsuit in Koblenz, Germany, with EFRI’s support, including a lawyer instructed by EFRI. The case is ongoing, but PAYVISION has already refunded the initial card deposit made by the victim.
- July 2023: EFRI filed a legal action against DNB (De Nederlandsche Bank – supervisory authority for PAYVISION BV), requesting their report on PAYVISION’s compliance failures. DNB declined to release the report, with a Dutch court supporting their position.
- September 2023: EFRI filed a lawsuit against PAYVISION, ING Bank, and ING Group on behalf of a Swiss (did more than 700k card payments via Payvision) and a Dutch victim (did 1k via card payments and 450k via ING bank accounts) seeking refunds. A list of 300 Barak and Lenhoff victims representing € 15 millions registered with EFRI was presented to the court.
- June 20, 2024: The Amsterdam court held a preliminary hearing on EFRI’s claim against PAYVISION.
- June 21, 2023 – October 16, 2024: Litigation was paused for settlement discussions.
- Since October 17, 2024: litigation for the Dutch victim is ongoing again.
Legal Actions and Developments
In the wake of EFRI’s efforts, PAYVISION B.V.’s operations were significantly impacted:
- November 30, 2020: ING announced partial divestment of PAYVISION’s business, halting relationships with pornography and gambling clients.
- October 28, 2021: ING stated that PAYVISION would gradually phase out its services.
- October 15, 2022: Dutch media outlet FD reported criminal investigations against PAYVISION for alleged money laundering failures.
- April 5, 2024: Former PAYVISION directors were fined by the Dutch Public Prosecution Service for persistent violations of AML and counter-terrorism financing laws. Pls be aware that the Dutch prosecutor never came back to EFRI and never did any cross-border investigation!
Today, PAYVISION B.V. is no longer operational; however, it remains unable to dissolve fully due to ongoing legal claims. EFRI remains committed to representing victims until proper restitution is secured.
Pending Litigation
As mentioned above as of October 30, 2024, now EFRI represents about 220 European victims who collectively suffered €11,5 million in losses due to PAYVISION’s non-compliance with KYC regulations. If you were affected by Barak and Lenhoff’s fraudulent sites, such as option888, xmarkets, tradeinvest, tradovest, Lottopalace, xtraderfx, safemarkets, or goldenmarkets, Optionstarsglobal you can join EFRI by emailing [email protected]. Note that time is limited due to the statute of limitations.
Litigation Funding Available
EFRI has secured litigation funding for victims, ensuring no upfront costs are required to join the legal action.
