FinTelegram had already warned about the CapitalFunds (www.capitalfunds.co) broker scam in August 2019. In our report at that time, we pointed out that this scam is part of the so-called Joshua Group, a Georgian-Bulgarian cybercrime organization operating a vast scam network with its boiler rooms. Various regulators have issued warnings against the scams of the Joshua Group. Today, BaFin has announced an investigation of CapitalFunds. Eventually!
We do not believe that BaFin’s Investigation will lead to any results. CapitalFunds is part of a criminal organization according to the German §129 or §129b of the German Criminal Code that commits serious serial fraud in the sense of §263. Crime is not the responsibility of the regulator but of the German and international law enforcement agencies. However, it would already be a success if BaFin filed a criminal report with the authorities.
With its regulatory focus, Bafin found that the content of the capitalfunds.co website and information and documents available to BaFin justify the assumption that the company is offering unauthorized banking transactions or financial services in Germany. Neither an imprint nor other indications of the provider’s place of business can be found on the website, BaFin stated. Alleged branches in London, Zurich, Singapore, and Moscow are listed.
We understand that law enforcement agencies in several jurisdictions are investigating Joshua Group. Therefore, we hope to be able to report on corresponding action days in the near future.