US citizen charged with running diamond Ponzi design, cryptocurrency rip-off

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US citizen charged with running diamond Ponzi design, cryptocurrency rip-off

US citizen charged with running diamond Ponzi design, cryptocurrency rip-off

A 51-year-feeble US citizen has been charged with running a diamond and cryptocurrency-essentially based Ponzi design.

Prosecutors utter that Jose Angel Aman, from Washington, DC., operated a counterfeit funding design across the US and Canada, luring merchants with guarantees of immediate returns in the diamond switch.

The US Division of Justice (DoJ) said on Friday that Aman was as soon as the operator of a Ponzi design from May perchance well perchance perchance also simply 2014 to May perchance well perchance perchance also simply 2019. Together along with his partners, Aman allegedly solicited members to make investments in “diamond contracts,” in which their cash may perchance perchance well be old to desire gargantuan, tough, uncut diamonds. 

These diamonds would then be decrease and polished in disclose to be resold at a profit. To instill have faith in the organization, Aman said that funds had been backed by his bear bodily colored diamond stock, it sounds as if price $25 million. 

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As is the case with many Ponzi and win-rich-immediate schemes, merchants demand of to take into consideration a decrease of the earnings and without this, Ponzi schemes are exposed and give scheme rapid. Therefore, Aman allegedly old investor funds to repay earlier funding “hobby,” and as extra merchants joined the pool, the transfer of funds down the chain continued — with none legitimate profit got from diamond purchases. 

When funds ran low and the operator was as soon as in chance of being exposed, he allegedly created “Reinvestment Contracts” to entice users to roll over their cash into novel ‘provides’ in disclose to desire Aman time to take a look at in novel merchants. 

On the opposite hand, this couldn’t take care of it up without extinguish, and US prosecutors convey that Aman position up Argyle Coin as the Ponzi design was as soon as on the brink. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond trading, and as a novel wave of funding poured into the coffers, only a “share of the cash purchased” was as soon as old to make a cryptocurrency token.

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As a replacement, the DoJ says the huge majority of the funds had been old to repay merchants from the outdated Ponzi program, beneath the names Natural Diamonds Investment Co. (Natural Diamonds) and Eagle Financial Diamond Crew Inc (Eagle). 

“All the scheme by the direction of the Ponzi design, Aman and his partners still over $25 million from a total lot of merchants,” prosecutors convey. “Aman allegedly old the cash to design purported hobby funds to merchants, to pay switch prices, to pay commissions to the partners, and to toughen his bear lavish life-style.”

Investor funds had been allegedly old for capabilities including housing rent, horse purchases, and utilizing classes.

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In 2019, the Securities and Alternate Price (SEC) got an emergency court disclose to freeze Argyle Coin’s operations. The US District Courtroom for the Southern District of Florida granted a predict for a non everlasting restraining disclose and asset freeze while the cryptocurrency organization was as soon as investigated. 

Aman is facing charges of wire fraud, which would perchance perchance perchance well result in up to 20 years gradual bars, apart from restitution funds. 

Outdated and associated coverage

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens offered in switch
  • IRS provides grants for tool to mark privacy-centered cryptocurrency trades
  • Lazarus neighborhood strikes cryptocurrency company by LinkedIn job adverts

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