US citizen charged with operating diamond Ponzi plot, cryptocurrency scam

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US citizen charged with operating diamond Ponzi plot, cryptocurrency scam

US citizen charged with operating diamond Ponzi plot, cryptocurrency scam

A 51-year-primitive US citizen has been charged with operating a diamond and cryptocurrency-primarily based mostly Ponzi plot.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a faux funding plot all the diagram by diagram of the United States and Canada, luring traders with guarantees of like a flash returns in the diamond substitute.

The US Division of Justice (DoJ) talked about on Friday that Aman turned into the operator of a Ponzi plot from Could well also fair 2014 to Could well also fair 2019. Collectively along with his partners, Aman allegedly solicited folks to put money into “diamond contracts,” in which their money would be primitive to resolve ample, tough, uncut diamonds. 

These diamonds would then be decrease and polished in inform to be resold at a profit. To instill trust in the group, Aman talked about that funds were backed by his like physical coloured diamond stock, apparently worth $25 million. 

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As is the case with many Ponzi and fetch-prosperous-like a flash schemes, traders demand to search around a decrease of the profits and with out this, Ponzi schemes are exposed and crumple like a flash. As a consequence of this truth, Aman allegedly primitive investor funds to repay earlier funding “pastime,” and as extra traders joined the pool, the transfer of funds down the chain persevered — with out any legitimate profit obtained from diamond purchases. 

When funds ran low and the operator turned into at risk of being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into novel ‘deals’ in inform to resolve Aman time to register novel traders. 

Nonetheless, this could presumably not protect on eternally, and US prosecutors dispute that Aman plan up Argyle Coin as the Ponzi plot turned into on the breaking point. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond buying and selling, and as a novel wave of funding poured into the coffers, ultimate a “share of the money obtained” turned into primitive to fetch a cryptocurrency token.

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Instead, the DoJ says the bulk of the funds were primitive to repay traders from the outdated Ponzi program, under the names Pure Diamonds Funding Co. (Pure Diamonds) and Eagle Financial Diamond Personnel Inc (Eagle). 

“In every single place throughout the Ponzi plot, Aman and his partners serene over $25 million from loads of of traders,” prosecutors dispute. “Aman allegedly primitive the money to fetch purported pastime payments to traders, to pay substitute charges, to pay commissions to the partners, and to crimson meat up his like lavish standard of living.”

Investor funds were allegedly primitive for functions including housing rent, horse purchases, and riding lessons.

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In 2019, the Securities and Change Commission (SEC) obtained an emergency court inform to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a ask for a brief restraining inform and asset freeze while the cryptocurrency group turned into investigated. 

Aman goes by diagram of charges of wire fraud, which could presumably result in as much as 20 years in the attend of bars, besides to restitution payments. 

Outdated and related coverage

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  • IRS affords grants for instrument to impress privacy-focused cryptocurrency trades
  • Lazarus personnel strikes cryptocurrency company by diagram of LinkedIn job adverts

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