US citizen charged with working diamond Ponzi plot, cryptocurrency rip-off

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US citizen charged with working diamond Ponzi plot, cryptocurrency rip-off

US citizen charged with working diamond Ponzi plot, cryptocurrency rip-off

A 51-year-primitive US citizen has been charged with working a diamond and cryptocurrency-essentially based Ponzi plot.

Prosecutors inform that Jose Angel Aman, from Washington, DC., operated a pretend investment plot all over the United States and Canada, luring merchants with guarantees of like a flash returns within the diamond change.

The US Department of Justice (DoJ) acknowledged on Friday that Aman used to be the operator of a Ponzi plot from Would possibly per chance well perchance additionally just 2014 to Would possibly per chance well perchance additionally just 2019. Together along with his partners, Aman allegedly solicited americans to speculate in “diamond contracts,” all the diagram thru which their money will likely be outdated to purchase perfect, tough, uncut diamonds. 

These diamonds would then be lower and polished in present to be resold at a profit. To instill belief within the organization, Aman acknowledged that funds were backed by his luxuriate in bodily colored diamond stock, curiously price $25 million. 

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As is the case with many Ponzi and get-rich-like a flash schemes, merchants query to gaze a lower of the profits and with out this, Ponzi schemes are uncovered and give diagram swiftly. Therefore, Aman allegedly outdated investor funds to pay off earlier investment “passion,” and as extra merchants joined the pool, the switch of funds down the chain persisted — with none legit profit received from diamond purchases. 

When funds ran low and the operator used to be inclined to being uncovered, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into original ‘deals’ in present to purchase Aman time to signal in original merchants. 

On the opposite hand, this also cannot assign it up with out end, and US prosecutors enlighten that Aman residing up Argyle Coin because the Ponzi plot used to be on the brink. Argyle Coin claimed to be a cryptocurrency-venture backed by diamond shopping and selling, and as a fresh wave of investment poured into the coffers, simplest a “fraction of the money got” used to be outdated to develop a cryptocurrency token.

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As an different, the DoJ says the massive majority of the funds were outdated to pay off merchants from the earlier Ponzi program, below the names Pure Diamonds Funding Co. (Pure Diamonds) and Eagle Financial Diamond Crew Inc (Eagle). 

“All the diagram thru the route of the Ponzi plot, Aman and his partners gentle over $25 million from hundreds of merchants,” prosecutors enlighten. “Aman allegedly outdated the money to to find purported passion payments to merchants, to pay industry charges, to pay commissions to the partners, and to enhance his luxuriate in lavish diagram of life.”

Investor funds were allegedly outdated for functions together with housing rent, horse purchases, and riding classes.

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In 2019, the Securities and Commerce Commission (SEC) received an emergency court present to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a ask for a temporary restraining present and asset freeze whereas the cryptocurrency organization used to be investigated. 

Aman goes thru charges of wire fraud, which also can consequence in up to 20 years within the inspire of bars, as well to restitution payments. 

Old and linked coverage

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens supplied in alternate
  • IRS offers grants for machine to mark privacy-focused cryptocurrency trades
  • Lazarus neighborhood strikes cryptocurrency agency thru LinkedIn job adverts

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