US citizen charged with running diamond Ponzi scheme, cryptocurrency scam

Reclaws International LLC > Uncategorized  > US citizen charged with running diamond Ponzi scheme, cryptocurrency scam

US citizen charged with running diamond Ponzi scheme, cryptocurrency scam

US citizen charged with running diamond Ponzi scheme, cryptocurrency scam

A 51-twelve months-worn US citizen has been charged with running a diamond and cryptocurrency-based entirely Ponzi scheme.

Prosecutors pronounce that Jose Angel Aman, from Washington, DC., operated a spurious investment scheme across the US and Canada, luring investors with promises of fleet returns within the diamond exchange.

The US Division of Justice (DoJ) acknowledged on Friday that Aman became as soon as the operator of a Ponzi scheme from Might well perchance possibly 2014 to Might well perchance possibly 2019. Along with his partners, Aman allegedly solicited americans to invest in “diamond contracts,” thru which their money could possibly be worn to bewitch colossal, rough, uncut diamonds. 

These diamonds would then be lower and polished in give away to be resold at a revenue. To instill believe within the organization, Aman acknowledged that funds were backed by his maintain physical coloured diamond stock, curiously charge $25 million. 

Seek also: DoJ arrests Ponzi operators planning to retire ‘RAF’ thru cryptocurrency scam

As is the case with many Ponzi and get-neatly off-fleet schemes, investors quiz to acknowledge a lower of the profits and with out this, Ponzi schemes are uncovered and crumple speedily. Ensuing from this truth, Aman allegedly worn investor funds to repay earlier investment “pastime,” and as extra investors joined the pool, the transfer of funds down the chain continued — with none legitimate revenue got from diamond purchases. 

When funds ran low and the operator became as soon as prone to being uncovered, he allegedly created “Reinvestment Contracts” to entice customers to roll over their cash into unique ‘deals’ in give away to bewitch Aman time to charge up unique investors. 

On the opposite hand, this could possibly possibly well now not save it up ad infinitum, and US prosecutors state that Aman space up Argyle Coin as the Ponzi scheme became as soon as on the verge of crumple. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond procuring and selling, and as a singular wave of investment poured into the coffers, most intelligent a “portion of the money bought” became as soon as worn to carry out a cryptocurrency token.

CNET: Finest iPhone VPNs of 2020

As an alternative, the DoJ says the massive majority of the funds were worn to repay investors from the outdated Ponzi program, below the names Natural Diamonds Funding Co. (Natural Diamonds) and Eagle Monetary Diamond Team Inc (Eagle). 

“For the length of the course of the Ponzi scheme, Aman and his partners serene over $25 million from hundreds of investors,” prosecutors state. “Aman allegedly worn the money to produce purported pastime payments to investors, to pay enterprise payments, to pay commissions to the partners, and to toughen his maintain lavish standard of living.”

Investor funds were allegedly worn for capabilities along with housing rent, horse purchases, and using classes.

TechRepublic: Microsoft detects wave of cyberattacks two months earlier than US presidential election

In 2019, the Securities and Replace Commission (SEC) got an emergency court docket give away to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a seek files from of for a non permanent restraining notify and asset freeze while the cryptocurrency organization became as soon as investigated. 

Aman is going thru payments of wire fraud, which could possibly outcome in up to 20 years late bars, as neatly as restitution payments. 

Earlier and related protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens supplied in switch
  • IRS gives grants for instrument to hint privacy-centered cryptocurrency trades
  • Lazarus crew strikes cryptocurrency firm thru LinkedIn job adverts

Maintain a tip? Salvage fervent securely through WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0


No Comments

Sorry, the comment form is closed at this time.

24/5 Days Working.. Send us a Message Reclaws International LLC