US citizen charged with working diamond Ponzi blueprint, cryptocurrency scam

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US citizen charged with working diamond Ponzi blueprint, cryptocurrency scam

US citizen charged with working diamond Ponzi blueprint, cryptocurrency scam

A 51-year-frail US citizen has been charged with working a diamond and cryptocurrency-primarily primarily based Ponzi blueprint.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a counterfeit investment blueprint across the US and Canada, luring merchants with promises of like a flash returns in the diamond commerce.

The US Division of Justice (DoJ) acknowledged on Friday that Aman was the operator of a Ponzi blueprint from Would possibly perhaps well well 2014 to Would possibly perhaps well well 2019. Together alongside with his partners, Aman allegedly solicited people to put money into “diamond contracts,” all thru which their money would be used to lift wide, tough, uncut diamonds. 

These diamonds would then be minimize and polished in expose to be resold at a earnings. To instill believe in the group, Aman acknowledged that funds were backed by his occupy physical colored diamond stock, it sounds as if price $25 million. 

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As is the case with many Ponzi and catch-prosperous-like a flash schemes, merchants question to evaluate a minimize of the earnings and with out this, Ponzi schemes are exposed and collapse fleet. Therefore, Aman allegedly used investor funds to pay off earlier investment “curiosity,” and as more merchants joined the pool, the switch of funds down the chain persisted — with none legit earnings purchased from diamond purchases. 

When funds ran low and the operator was at likelihood of being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into original ‘deals’ in expose to lift Aman time to signal in original merchants. 

On the opposite hand, this may presumably perhaps presumably now not follow it with no slay in sight, and US prosecutors say that Aman space up Argyle Coin as the Ponzi blueprint was on the breaking level. Argyle Coin claimed to be a cryptocurrency-project backed by diamond buying and selling, and as a fresh wave of investment poured into the coffers, handiest a “section of the money got” was used to invent a cryptocurrency token.

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As an replacement, the DoJ says the bulk of the funds were used to pay off merchants from the outdated Ponzi program, under the names Natural Diamonds Investment Co. (Natural Diamonds) and Eagle Financial Diamond Neighborhood Inc (Eagle). 

“In the route of the route of the Ponzi blueprint, Aman and his partners soundless over $25 million from a quantity of of merchants,” prosecutors say. “Aman allegedly used the money to create purported curiosity funds to merchants, to pay commerce costs, to pay commissions to the partners, and to toughen his occupy lavish standard of living.”

Investor funds were allegedly used for applications in conjunction with housing rent, horse purchases, and riding classes.

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In 2019, the Securities and Alternate Rate (SEC) purchased an emergency court docket expose to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a request for a momentary restraining expose and asset freeze whereas the cryptocurrency group was investigated. 

Aman is facing costs of wire fraud, which can presumably perhaps presumably result in as much as 20 years at the help of bars, as well to restitution funds. 

Previous and related protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens provided in replace
  • IRS supplies grants for instrument to price privacy-centered cryptocurrency trades
  • Lazarus workers strikes cryptocurrency agency thru LinkedIn job adverts

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