The Tel Aviv District Court convicted former UTrade chief analyst Roy Cuzin on Sunday of helping the algorithmic-trading company obtain approximately NIS 77 million from some 600 clients through fraud.
Cuzin admitted to multiple counts of aiding aggravated fraud under a plea agreement. Judge Dana Amir convicted him after prosecutors filed an amended indictment setting out a narrower account of his role in the scheme.
The prosecution and defense will jointly ask the court to sentence Cuzin to 22 months in prison and impose a NIS 25,000 fine.
Cuzin served as UTrade’s chief analyst from 2012 to 2015. The company offered automated trading services using an algorithm that selected investments on behalf of its clients.
Under its agreements with customers, UTrade was required to return their investments within seven to 10 days of a withdrawal request.
The amended indictment states that the company’s recruitment process relied on false claims and the concealment of important information about its operations. Among other things, prospective clients were given misleading information about the separation of customer and company funds, potential conflicts of interest, and regulatory oversight.
Cuzin admitted specifically to helping present customers with false figures about UTrade’s previous investment returns. Because he supervised the company’s trading program and had access to its trading accounts, he knew the figures did not reflect the company’s actual performance, according to the amended indictment.
UTrade encountered financial difficulties in 2015 after much of its customers’ money was used for company expenses and other investments - rather than trading.
UTrade owed customers NIS 42 million by end of 2015
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 the delays resulted from temporary technical difficulties, without being informed of the company’s financial condition.
Cuzin also helped sign customers to agreements promising accounts “protected against losses” if they left their money with UTrade for 12 months. He admitted knowing that leaving the funds with the company placed them at risk.
By the end of 2015, UTrade owed its customers approximately NIS 42 million, while its customer account held only about NIS 173,000 and $50,000, according to the amended indictment.
Talmor previously convicted
The indictment draws an important distinction between Cuzin’s conduct and that of Talmor. It states that Talmor directed the unauthorized transfer 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 the company or accept delayed repayment.
Talmor was previously convicted in the affair. The Supreme Court increased his sentence from four to five years in prison in 2024 and left a NIS 250,000 fine in place.
Cuzin was questioned under caution in 2016 and left Israel shortly afterward. He and several others were indicted in 2018, but the proceedings against him could not advance while he remained abroad.
After moving among several countries, Cuzin was arrested in Mexico in July 2025. Mexican authorities approved his extradition in December, and he was returned to Israel in January to stand trial.
James Genn contributed to this report.