Civil Case (Tel Aviv) 45944-12-20 Helen Travis v. Global Guardianship Technologies (2010) Ltd. - part 43

Moreover, it was determined that the plaintiff was presented with false representations regarding the identification of interests between her and Collins, and that the conflict of interest between her and Global (or OFM) was also concealed from her .  As for Global, I determined that the manner in which Shabbat explained the receipt of the commission by Global - which is the spread between the investments of the two clients - indicates in itself the identity between Global and the trading arena.  Otherwise, then on the face of it, Global should have received a commission only from its customers' money or investments, or only in a case where both Global's customer and the market maker are Global's customers.  It was determined that the fact that Global received a commission in the form of the spread from the clients' conflicting investments is sufficient to incentivize Global to lead its customers to carry out transactions on a considerable scale and not to withdraw their funds - since, the higher the volume of the clients' activity - the higher Global's commission.  I further determined that Global's conflicting interests vis-à-vis its customers also have an impact on the manner in which Global's employees are compensated - a remuneration that promotes Global's interests vis-à-vis the interests of its customers.  This was after I determined that it was in the interest of Global's employees that customers would deposit more and more money, withdraw as little money as possible, and trade in considerable trading volumes.  This is contrary to the interest of the customers, that trading in considerable volumes will eventually lead to the loss of the customers.  I further determined that the interest of Global, and consequently of its employees, in increasing the clients' investments and the scope of their transactions, could have led to the presentation of false representations to clients regarding agreements with leading companies, as well as regarding the protection of their money through the bonuses that were injected into their account.