On May 8, 2018, the German regulator BaFin issued cease-and-desist orders against three of Kai Petersen’s companies to terminate their scam business. One was the FinTech Service GmbH, registered in Dusseldorf, Germany. An appeal against these orders was rejected by the respective court in Frankfurt. In September 2019 the U.S. SEC has charged Kai Petersen together with his Israeli partners Gil Beserglik and Raz Beserglik with binary options fraud. FinTelegram has reported and Kai Petersen has contacted FinTelegram for clarification.
An almost perfect confession
FinTelegram has brought a comprehensive report on the scam activities of Kai Petersen and his partners on 20 September 2020 (read the report here). In the report, it was also mentioned that through a bank account of a legal entity named “FinTechServices GmbH” at GRENKE Bank payments of the notorious Blue Trading scam were processed. We also attributed this company to Kai Petersen (see a 2006 profile picture left) for several reasons.
In his statement to FinTelegram News, Kai Petersen did not deny his participation in scams but denied the involvement in this “new” FinTechServices GmbH and the Blue Trading scam. He accused FinTelegram of lousy research in this count. One out of ten counts. That is his right in the first place and we respect that. The fact is that FinTelegram continues to stand by its fact-based and well-reasoned conclusion based on the following points.
- BaFin investigation – the German regulator investigated Petersen’s FinTech Service GmbH between April and May 2018 which was known to Petersen.
- BaFin Cease and Desist orders – the German regulators issued the Cease-and-Desist order on May 8, 2018, against the FinTech Service GmbH – and the two other companies JAC GmbH and CS Compliance Service GmbH
- “New” FinTechServices GmbH established – the new and almost identical named FinTechServices GmbH was recorded in the companies register on May 17, 2020, based on a shareholder decision from May 7, 2020.
- The “new” FinTechServices GmbH was established by using and renaming a dormant company of the Munich company builder SCUR24.
- The registered office of the “new” FinTechServices GmbH was immediately transferred from Munich to Dusseldorf, where Kai Petersen and his “old” FinTech Services GmbH and his other companies resided.
- The “new” FinTechServices GmbH was urgently needed to process payments and consequently received deposits from victims of scams like Blue Trading and there it was.
- Kai Petersen is a forex trading veteran and according to the SEC findings an experienced scam artist. He continuously establishes and renames legal entities. He for example introduced the forex brand FINEXO in Germany sometime in 2006 (read this PR piece), later operated it via the legal entity DTS GmbH in Dusseldorf (see the archived website here), transferred the business to the 2008-established Finexo Service GmbH which was later renamed into TS Trading Service GmbH, and then into CS Compliance Services GmbH which received the cease-and-desist order from BaFin. Within a few weeks after the application for the reinstatement of the suspension of the decision has been denied, the company was renamed into Premier Infra GmbH and liquidated (see Northdata records here).
What are the odds, that two almost identically named legal entities in Dusseldorf are engaged in exactly the same type of broker scams are not related? Apparently, these odds are almost zero.
Final words with prosecutors and courts
Whether the fact-based conclusions of FinTelegram are correct or not must be determined by the investigations of the responsible public prosecutor’s office in Mannheim, Germany. They currently have an open criminal file in this case. The fact remains that Kai Petersen has been involved in and facilitated many binary options and broker scams. The U.S. SEC has sued him and his partners for this, the German BaFin has confirmed this in its investigations and ordered him to cease his scam businesses.