Veltyco Group Under Scrutiny: Suspected Insider Trading and Bulgarian Share Transactions

Undisclosed Share Purchases by Uwe Lenhoff Through Bulgarian Entities

According to information obtained by the Scam-or Project from sources closely associated with Veltyco Group and its stakeholders, Uwe Lenhoff—founder and former director of the company—allegedly acquired Veltyco shares in 2017 without properly disclosing these transactions, despite his directorial position. This concealment raises significant concerns, especially considering that the notable price surge in 2017 may have been driven by these insider dealings.

It is alleged that Lenhoff executed these transactions through his Bulgarian companies, Windsor Enterprises Ltd and Savora Consulting Ltd, both reportedly involved in fraudulent brokerage operations tied to platforms like Option888. There are indications that funds obtained from scammed investors were funneled into these share acquisitions, potentially laundering illicit capital via Veltyco stock.

Regulatory Challenges and New Board Leadership

In a company announcement dated March 7, 2019, Veltyco Group stated that Paul Duffen had been appointed as the new executive chairman. He faces substantial regulatory and organizational challenges following Lenhoff’s arrest on charges including fraud, financial crime, and money laundering by European authorities.

Documents and testimonies suggest Lenhoff’s Bulgarian companies were instrumental in acquiring Veltyco shares for several hundred thousand euros. At that time, Lenhoff held dual roles—as Veltyco’s largest shareholder and its Chief Operating Officer (COO). Given the limited trading volume of the company’s stock, such insider purchases would have a direct influence on share price performance.

Suspicious Share Price Surge in 2017

Between January and September 2017, Veltyco’s stock price nearly tripled, jumping from GBX 33 to over GBX 100. Insider information suggests that Lenhoff used this price momentum to entice investors into purchasing shares. According to two institutional investors contacted during this period, the rising valuation influenced their decisions to invest.

Despite this, there was no formal disclosure from Veltyco or its directors regarding these insider trades. The only available trading update from 2017 expressed satisfaction with the strong performance of the company’s stock, without addressing any director-level share movements.

Table: Veltyco Share Price Surge in 2017

Evidence Suggests Potential Price Manipulation

The intelligence gathered points to possible market manipulation through concealed insider activity. Multiple data points imply that undisclosed share purchases by Lenhoff and other insiders may have artificially inflated Veltyco’s stock value during 2017.

Illicit Broker Funds and Money Laundering Concerns

Evidence suggests that Lenhoff’s company Winslet Enterprises Ltd received payments from illegal broker networks via unlicensed payment service providers such as XTrabit s.r.o. and Payific. These brokers—Option888, XMarkets, TradoVest, and TradeInvest90 among them—have been linked to defrauding retail investors.

Moreover, XTrabit s.r.o. reportedly made payments to Helix Trading Ltd, a company associated with former Veltyco board member Hans Dahlgren. Notably, Dahlgren exercised Veltyco stock options via Helix Trading in September 2017, as detailed in a press release from September 18, 2017.

Potential Breaches of UK Securities Regulations

A critical issue remains: whether other Veltyco board members were aware of these suspect transactions. It is now up to authorities, including the UK’s Financial Conduct Authority (FCA), to determine whether these actions constitute violations of securities legislation. Both insider trading and manipulation of share prices fall within regulatory purview and carry legal consequences.

Ongoing Investigations

The Scam-or Project will continue to monitor the developments surrounding Veltyco Group and will report further findings as investigations progress.