US citizen charged with running diamond Ponzi diagram, cryptocurrency scam
A 51-one year-fashioned US citizen has been charged with running a diamond and cryptocurrency-essentially based totally mostly Ponzi diagram.
Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a pretend funding diagram everywhere in the US and Canada, luring investors with guarantees of immediate returns within the diamond trade.
The US Division of Justice (DoJ) stated on Friday that Aman change into as soon as the operator of a Ponzi diagram from May perhaps moreover just 2014 to May perhaps moreover just 2019. Together alongside with his companions, Aman allegedly solicited folks to make investments in “diamond contracts,” wherein their money might perhaps perhaps well well be outdated faculty to exhaust colossal, rough, uncut diamonds.
These diamonds would then be cut back and polished in list to be resold at a profit. To instill have confidence within the group, Aman stated that funds accumulate been backed by his possess physical colored diamond stock, curiously value $25 million.
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As is the case with many Ponzi and accumulate-affluent-immediate schemes, investors inquire to leer a cut back of the profits and with out this, Ponzi schemes are uncovered and give diagram posthaste. Due to this truth, Aman allegedly outdated faculty investor funds to pay off earlier funding “passion,” and as more investors joined the pool, the switch of funds down the chain persevered — with out any respectable profit bought from diamond purchases.
When funds ran low and the operator change into as soon as at likelihood of being uncovered, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into original ‘deals’ in list to exhaust Aman time to signal in original investors.
Nonetheless, this will doubtless perhaps well perhaps moreover no longer persist with it with out raze, and US prosecutors enlighten that Aman role up Argyle Coin as the Ponzi diagram change into as soon as on the breaking level. Argyle Coin claimed to be a cryptocurrency-undertaking backed by diamond trading, and as a fresh wave of funding poured into the coffers, simplest a “piece of the money bought” change into as soon as outdated faculty to diagram a cryptocurrency token.
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As a replace, the DoJ says nearly all of the funds accumulate been outdated faculty to pay off investors from the earlier Ponzi program, below the names Natural Diamonds Investment Co. (Natural Diamonds) and Eagle Financial Diamond Community Inc (Eagle).
“At some stage everywhere in the Ponzi diagram, Aman and his companions easy over $25 million from heaps of of investors,” prosecutors enlighten. “Aman allegedly outdated faculty the money to rep purported passion payments to investors, to pay trade charges, to pay commissions to the companions, and to enhance his possess lavish lifestyle.”
Investor funds accumulate been allegedly outdated faculty for purposes alongside with housing rent, horse purchases, and driving classes.
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In 2019, the Securities and Exchange Rate (SEC) bought an emergency court list to freeze Argyle Coin’s operations. The US District Courtroom for the Southern District of Florida granted a do a query to for a non permanent restraining list and asset freeze whereas the cryptocurrency group change into as soon as investigated.
Aman goes thru costs of wire fraud, which would perchance moreover result in as a lot as 20 years on the encourage of bars, besides to restitution payments.
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