Former UTrade chief analyst Roy Cuzin convicted in NIS 77 million investor fraud case

Former UTrade chief analyst Roy Cuzin was convicted on Sunday of helping the algorithmic-trading company obtain approximately NIS 77 million from about 600 clients through fraud.

Cuzin admitted several counts of aiding aggravated fraud under a plea agreement. Judge Dana Amir convicted him after prosecutors filed an amended indictment that gave a narrower account of his role. The prosecution and defense will jointly ask for a 22-month prison sentence and a NIS 25,000 fine.

Cuzin served as UTrade’s chief analyst from 2012 to 2015. The company offered automated trading services through an algorithm that selected investments for clients. Its agreements required it to return investments within seven to 10 days after a withdrawal request.

The amended indictment said UTrade recruited customers using false claims and concealed important information about its operations. Prospective clients received misleading information about the separation of customer and company funds, potential conflicts of interest, and regulatory oversight. Cuzin admitted helping present false figures for UTrade’s past investment returns. Because he supervised the trading program and had access to the trading accounts, he knew the figures did not reflect actual performance, according to the indictment.

UTrade ran into financial difficulties in 2015 after much of its customers’ money went toward company expenses and other investments instead of trading. As the company struggled to meet withdrawal requests, Cuzin helped owner and manager Aviv Talmor persuade dozens of customers to accept repayment plans lasting several months. Customers were told that temporary technical problems caused the delays, without being told about the company’s financial condition.

Cuzin also helped sign customers to agreements promising accounts were "protected against losses" if they left their funds with UTrade for 12 months. He admitted knowing that keeping the money with the company exposed it to risk. By the end of 2015, UTrade owed customers about NIS 42 million, while its customer account held approximately NIS 173,000 and $50,000.

The indictment distinguished Cuzin’s conduct from Talmor’s. It said Talmor directed unauthorized transfers of customer funds without Cuzin’s knowledge. Cuzin’s conviction concerns his assistance in presenting false returns and persuading customers to leave their money with UTrade or accept delayed repayment. Talmor had previously been convicted in the case.

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protected against losses