Israeli investment fraud network defrauds over 4,000 Australians of millions, report finds

An investigation by the Australian Broadcasting Corporation (ABC) has exposed an extensive investment fraud network, allegedly operated from Israel since 2021, which has defrauded more than 4,000 Australians of hundreds of millions of dollars. Dubbed the Sapphire Network, the operation employed deceptive tactics, including fake news articles designed to mimic legitimate publications like the ABC itself, to lure unsuspecting victims onto fraudulent trading platforms.

At the center of the alleged scheme is 43-year-old Israeli businessman Shefi Goldberg, a figure about whom little is publicly known. The investigation suggests Goldberg managed telemarketing sales centers across Israel, Cyprus, South Africa, Spain, and the Philippines, which also offered services such as immigration assistance. Furthermore, the probe links Goldberg to a complex and concealed network of companies used to funnel victims' money. These include Cyprus-based Allegiant Holdings (Smart Pay), where Goldberg is reportedly the sole shareholder, and the Australian company Trigo XO, which allegedly functioned as a front for money laundering.

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I need to buy a wheelchair.

The investigation, a collaborative effort with the Organized Crime and Corruption Reporting Project (OCCRP), Swedish media foundation Qurium, and South African investigative journalism center amaBhungane, utilized leaked documents. These documents indicate the network operated from centers in Israel, Bulgaria, Ukraine, Cyprus, and Macedonia. The scale of the fraud is underscored by the experiences of two Australian victims who collectively lost nearly $625,000.

One victim, facing medical bills, invested approximately $125,000 through a fake platform called The FBTC. When attempting to withdraw funds, the victim was met with a series of excuses from their "broker," including account freezes and liquidity problems. Despite pleading for funds to cover medical expenses, the broker callously suggested investing an additional $5,000. The victim never heard from the broker again, and the money vanished. The second victim lost over half a million dollars after being directed to a fake website designed to imitate ABC in early 2026.

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Sorry to hear that. If you can manage to get the 5,000 [additional dollars to invest]… that would be perfect.