According to the plaintiffs, Sarel and Shahar presented Rafi with representations according to which the venture would be similar to the one established by Plus500, an Israeli company in the field of CFD trading on an Internet platform, i.e., that a complete system would be developed that would include a trading server and the recruitment of customers would be online; the entire venture would be conducted in accordance with the legal regulations in the countries in which the venture would offer its services; as early as the 6th month of the venture, the software would be on the air and work with customers, and starting from the 15th month, the venture would generate a net profit; Sarel and Shahar presented themselves to Rafi as having the ability to spend the project to be implemented.
According to the plaintiffs, in practice it turned out that the representations were false, so that they fraudulently withdrew funds in the sum of ILS 2,351,634, of which the sum of ILS 1,148,142 went down the drain. According to them, it turned out that Sarel and Shahar never intended to develop a complete system, but rather a "landing page only", i.e., a system that is completely dependent on receiving services from a British company, which was the engine of the entire venture; The attempt to recruit customers online failed; Sarel and Shahar never intended that the venture would operate in a regulatory manner; The representation of the beginning of revenue generation in the 6th month for the venture and a net profit in the 15th month was false. In practice, the product only went live in 2016; It turned out that Sarel and Shahar lacked any professional experience.
In addition, it was claimed that Sarel and Shahar took wages from Cybertrade in violation of the agreement, used and took Cybertrade's equipment after it was closed.
In addition, Sarel and Shahar abandoned CyberTrade's activities, operated within its offices as part of their other business activities, and for this purpose used the employees whose salaries Cybertrade paid to promote their private businesses, in which Rafi had no part. This refers to "dating" sites that operated under the names Luxur and Makelove, in relation to which it was claimed that Sarel and Shahar engaged in promoting them while working in cybertrade and loaded huge advertising expenses for this purpose.