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

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

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

A 51-year-outmoded US citizen has been charged with running a diamond and cryptocurrency-based mostly Ponzi scheme.

Prosecutors impart that Jose Angel Aman, from Washington, DC., operated a fraudulent investment scheme across the US and Canada, luring merchants with guarantees of mercurial returns within the diamond commerce.

The US Department of Justice (DoJ) acknowledged on Friday that Aman was once the operator of a Ponzi scheme from Can also honest 2014 to Can also honest 2019. Together alongside with his companions, Aman allegedly solicited folk to speculate in “diamond contracts,” wherein their money might per chance per chance be historical to contain huge, rough, uncut diamonds. 

These diamonds would then be prick and polished in make clear to be resold at a profit. To instill belief within the organization, Aman acknowledged that funds were backed by his possess physical colored diamond stock, it sounds as if price $25 million. 

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As is the case with many Ponzi and receive-affluent-mercurial schemes, merchants query to peek a prick of the earnings and with out this, Ponzi schemes are uncovered and give plot snappy. Therefore, Aman allegedly historical investor funds to repay earlier investment “ardour,” and as extra merchants joined the pool, the switch of funds down the chain continued — with none legitimate profit got from diamond purchases. 

When funds ran low and the operator was once at risk of being uncovered, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into new ‘deals’ in make clear to contain Aman time to enroll new merchants. 

Nonetheless, this is able to per chance now not stick with it eternally, and US prosecutors insist that Aman role up Argyle Coin as the Ponzi scheme was once on the brink. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond trading, and as a new wave of investment poured into the coffers, supreme a “fragment of the money bought” was once historical to build a cryptocurrency token.

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In its save, the DoJ says the bulk of the funds were historical to repay merchants from the outdated Ponzi program, below the names Pure Diamonds Funding Co. (Pure Diamonds) and Eagle Financial Diamond Neighborhood Inc (Eagle). 

“Right via the direction of the Ponzi scheme, Aman and his companions still over $25 million from an entire bunch of merchants,” prosecutors insist. “Aman allegedly historical the money to function purported ardour funds to merchants, to pay commerce costs, to pay commissions to the companions, and to make stronger his possess lavish way of life.”

Investor funds were allegedly historical for ideas in conjunction with housing rent, horse purchases, and driving lessons.

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In 2019, the Securities and Switch Price (SEC) got an emergency court make clear to freeze Argyle Coin’s operations. The US District Courtroom for the Southern District of Florida granted a search files from for a non permanent restraining make clear and asset freeze whereas the cryptocurrency organization was once investigated. 

Aman is facing costs of wire fraud, which would per chance per chance lead to up to 20 years behind bars, in addition to restitution funds. 

Outdated and related protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens equipped in commerce
  • IRS presents grants for tool to ticket privacy-targeted cryptocurrency trades
  • Lazarus community strikes cryptocurrency company via LinkedIn job adverts

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