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-frail US citizen has been charged with working a diamond and cryptocurrency-primarily based entirely Ponzi plot.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a groundless funding plot across the US and Canada, luring investors with promises of hasty returns in the diamond alternate.

The US Division of Justice (DoJ) said on Friday that Aman was the operator of a Ponzi plot from May per chance presumably furthermore just 2014 to May per chance presumably furthermore just 2019. Alongside with his companions, Aman allegedly solicited folks to put money into “diamond contracts,” by which their money might per chance per chance presumably be dilapidated to exhaust large, tough, uncut diamonds. 

These diamonds would then be lower and polished in portray to be resold at a profit. To instill belief in the group, Aman said that funds had been backed by his maintain physical colored diamond stock, interestingly price $25 million. 

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As is the case with many Ponzi and fetch-filthy rich-hasty schemes, investors ask to search out a lower of the earnings and without this, Ponzi schemes are exposed and collapse quick. Therefore, Aman allegedly dilapidated investor funds to repay earlier funding “hobby,” and as more investors joined the pool, the switch of funds down the chain continued — without any legit profit received from diamond purchases. 

When funds ran low and the operator was in threat of being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into new ‘deals’ in portray to exhaust Aman time to join new investors. 

On the opposite hand, this couldn’t persist with it without discontinuance, and US prosecutors command that Aman living up Argyle Coin as the Ponzi plot was on the breaking level. Argyle Coin claimed to be a cryptocurrency-project backed by diamond trading, and as a original wave of funding poured into the coffers, only a “fraction of the money obtained” was dilapidated to create a cryptocurrency token.

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As a substitute, the DoJ says the bulk of the funds had been dilapidated to repay investors from the previous Ponzi program, below the names Pure Diamonds Funding Co. (Pure Diamonds) and Eagle Monetary Diamond Community Inc (Eagle). 

“All the way by the direction of the Ponzi plot, Aman and his companions level-headed over $25 million from an complete bunch of investors,” prosecutors command. “Aman allegedly dilapidated the money to make purported hobby payments to investors, to pay alternate prices, to pay commissions to the companions, and to augment his maintain lavish lifestyle.”

Investor funds had been allegedly dilapidated for capabilities including housing lease, horse purchases, and riding lessons.

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In 2019, the Securities and Substitute Commission (SEC) received an emergency courtroom portray to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a request for a quick-term restraining portray and asset freeze while the cryptocurrency group was investigated. 

Aman goes by prices of wire fraud, which might per chance per chance presumably discontinue in as much as 20 years unhurried bars, moreover restitution payments. 

Outdated and related protection

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  • IRS affords grants for instrument to mark privateness-focused cryptocurrency trades
  • Lazarus community strikes cryptocurrency company by LinkedIn job adverts

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