Leaked records reviewed by Australia’s ABC appear to place a Cyprus-registered electronic transaction management company within the payment infrastructure allegedly used by an international investment fraud operation.
The broader network reportedly received about $240 million from more than 26,000 people across 33 countries.
At the centre of the Cyprus connection is Allegiant Holdings Ltd, which operated under the Smart Pay brand. Corporate records cited by ABC show the company is registered in Cyprus and lists 43-year-old Israeli businessman Sefi Goldberg as its sole shareholder.
ABC clarified that the Cyprus company should not be confused with a company of the same name registered in the United Kingdom.
What the leaked records show
Videos and documents leaked from the so-called Sapphire Network appear to show employees using Smart Pay’s system to record payments made by victims.
In one video, an employee entered payment details into the Smart Pay dashboard and internal spreadsheets. Other material documented the issuing of $250 invoices, reportedly corresponding to the initial payment requested from several victims.
Transaction records were shared through an email address linked to Smart Pay and Allegiant Holdings. Investigators said this suggests the platform had been integrated into the network’s payment-processing system.
The wider OCCRP investigation, titled Scam Empire, identified at least seven offices used by the operation’s Israeli and European branches, including locations in Cyprus, Israel, Bulgaria, Ukraine and Spain.
Internal financial records reviewed by OCCRP indicate that the wider network received approximately $240 million from more than 26,000 people between January 2021 and December 2024.
The available evidence does not suggest that all this money was processed through the Cyprus company.
Fake news and non-existent investments
The alleged operators attracted victims through fake news reports, some of which closely copied ABC’s website. They promised substantial returns from investments in oil, gold and cryptocurrencies, often claiming that artificial intelligence was being used.
People who submitted their contact details received calls from individuals posing as brokers or financial advisers. Their screens displayed supposed transactions and rising balances, but ABC reported that in many cases no genuine investment had been made.
OCCRP documented 81 investment websites connected to the network. Although presented as independent businesses, they used common staff, shared transaction records and the same companies to channel funds.
Two Australians lost $625,000
Two Australians who spoke to investigators lost a combined total of about $625,000.
One invested approximately $125,000 through a platform called The FBTC. When he tried to withdraw his money, he was told that his account had been frozen, that there were liquidity problems and that additional fees were required.
Despite being in hospital and needing money to purchase a wheelchair, the supposed broker asked him to pay another $5,000.
A second victim transferred more than half a million dollars, believing he was trading in oil and gold. He was later told that he owed hundreds of thousands of dollars and was pressured to take out loans secured against his home and business.
Israeli businessman denies involvement
Sefi Goldberg denied any involvement in fraud or the processing of illegal payments.
He said Allegiant Holdings is used to provide services and maintained that, although corporate records cited by ABC list him as its sole shareholder, he is not involved in its management or daily operations.
The Jerusalem Post, reporting on the Australian investigation, said Goldberg was allegedly connected to telemarketing companies operating in Cyprus, Israel, South Africa, Spain and the Philippines.
Goldberg rejects the allegations and says he has no connection to the illegal activities described in the investigation.
