US citizen charged with working diamond Ponzi draw, cryptocurrency scam

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US citizen charged with working diamond Ponzi draw, cryptocurrency scam

US citizen charged with working diamond Ponzi draw, cryptocurrency scam

A 51-year-old US citizen has been charged with working a diamond and cryptocurrency-primarily based fully Ponzi draw.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a false funding draw across the US and Canada, luring investors with guarantees of rapid returns within the diamond alternate.

The US Department of Justice (DoJ) said on Friday that Aman changed into the operator of a Ponzi draw from Would possibly per chance per chance also simply 2014 to Would possibly per chance per chance also simply 2019. With his companions, Aman allegedly solicited individuals to make investments in “diamond contracts,” wherein their money would be feeble to settle immense, rough, uncut diamonds. 

These diamonds would then be cut and polished in screech to be resold at a profit. To instill belief within the group, Aman said that funds were backed by his have physical colored diamond stock, interestingly worth $25 million. 

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As is the case with many Ponzi and uncover-rich-rapid schemes, investors ask to gape a cut of the profits and without this, Ponzi schemes are uncovered and cave in rapidly. Due to the this truth, Aman allegedly feeble investor funds to repay earlier funding “interest,” and as more investors joined the pool, the switch of funds down the chain persevered — without any official profit obtained from diamond purchases. 

When funds ran low and the operator changed into at risk of being uncovered, he allegedly created “Reinvestment Contracts” to entice customers to roll over their cash into modern ‘deals’ in screech to settle Aman time to envision in modern investors. 

Nonetheless, this might per chance per chance per chance additionally no longer stick with it forever, and US prosecutors utter that Aman explain up Argyle Coin as the Ponzi draw changed into on the brink. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond shopping and selling, and as a new wave of funding poured into the coffers, finest a “section of the money obtained” changed into feeble to accomplish a cryptocurrency token.

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As a alternative, the DoJ says the wide majority of the funds were feeble to repay investors from the previous Ponzi program, under the names Natural Diamonds Investment Co. (Natural Diamonds) and Eagle Financial Diamond Neighborhood Inc (Eagle). 

“Within the future of the path of the Ponzi draw, Aman and his companions restful over $25 million from a complete bunch of investors,” prosecutors utter. “Aman allegedly feeble the money to kind purported interest funds to investors, to pay business expenses, to pay commissions to the companions, and to fortify his have lavish daily life.”

Investor funds were allegedly feeble for applications including housing rent, horse purchases, and driving classes.

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In 2019, the Securities and Change Commission (SEC) obtained an emergency courtroom screech to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a inquire for a non permanent restraining screech and asset freeze while the cryptocurrency group changed into investigated. 

Aman is facing charges of wire fraud, which might per chance well additionally stop in as a lot as 20 years on the abet of bars, as successfully as restitution funds. 

Old and related coverage

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  • IRS affords grants for tool to ticket privacy-focused cryptocurrency trades
  • Lazarus crew strikes cryptocurrency agency thru LinkedIn job adverts

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