US citizen charged with working diamond Ponzi plan, cryptocurrency scam

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US citizen charged with working diamond Ponzi plan, cryptocurrency scam

US citizen charged with working diamond Ponzi plan, cryptocurrency scam

A 51-365 days-historic US citizen has been charged with working a diamond and cryptocurrency-based Ponzi plan.

Prosecutors notify that Jose Angel Aman, from Washington, DC., operated a fraudulent funding plan all over the United States and Canada, luring investors with guarantees of snappily returns within the diamond trade.

The US Department of Justice (DoJ) acknowledged on Friday that Aman turned into as soon as the operator of a Ponzi plan from Can also simply 2014 to Can also simply 2019. Together alongside with his partners, Aman allegedly solicited folks to invest in “diamond contracts,” in which their cash may perchance well be historic to use broad, tough, uncut diamonds. 

These diamonds would then be minimize and polished in represent to be resold at a profit. To instill trust within the group, Aman acknowledged that funds own been backed by his comprise physical colored diamond stock, it appears worth $25 million. 

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As is the case with many Ponzi and rep-rich-snappily schemes, investors place a query to to see a minimize of the earnings and without this, Ponzi schemes are exposed and cave in fleet. Therefore, Aman allegedly historic investor funds to repay earlier funding “passion,” and as more investors joined the pool, the transfer of funds down the chain persevered — without any respectable profit got from diamond purchases. 

When funds ran low and the operator turned into as soon as vulnerable to being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their cash into new ‘deals’ in represent to use Aman time to register new investors. 

Nonetheless, this also cannot persist with it frequently, and US prosecutors state that Aman arena up Argyle Coin as the Ponzi plan turned into as soon as on the breaking level. Argyle Coin claimed to be a cryptocurrency-project backed by diamond trading, and as a contemporary wave of funding poured into the coffers, handiest a “fragment of the cash bought” turned into as soon as historic to slay a cryptocurrency token.

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As an different, the DoJ says the huge majority of the funds own been historic to repay investors from the outdated Ponzi program, below the names Natural Diamonds Funding Co. (Natural Diamonds) and Eagle Financial Diamond Crew Inc (Eagle). 

“All the draw in which by draw of the course of the Ponzi plan, Aman and his partners mute over $25 million from a complete bunch of investors,” prosecutors state. “Aman allegedly historic the cash to make purported passion payments to investors, to pay trade costs, to pay commissions to the partners, and to abet his comprise lavish standard of living.”

Investor funds own been allegedly historic for functions at the side of housing hire, horse purchases, and driving lessons.

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In 2019, the Securities and Alternate Commission (SEC) got an emergency court docket represent to freeze Argyle Coin’s operations. The US District Courtroom for the Southern District of Florida granted a query for a non permanent restraining represent and asset freeze whereas the cryptocurrency group turned into as soon as investigated. 

Aman is facing charges of wire fraud, which also can consequence in up to 20 years on the encourage of bars, to boot to restitution payments. 

Outdated and connected coverage

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  • Lazarus community strikes cryptocurrency agency by draw of LinkedIn job adverts

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