US citizen charged with working diamond Ponzi procedure, cryptocurrency scam

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US citizen charged with working diamond Ponzi procedure, cryptocurrency scam

US citizen charged with working diamond Ponzi procedure, cryptocurrency scam

A 51-One year-ragged US citizen has been charged with working a diamond and cryptocurrency-based mostly Ponzi procedure.

Prosecutors voice that Jose Angel Aman, from Washington, DC., operated a fraudulent investment procedure across the US and Canada, luring patrons with promises of like a flash returns in the diamond trade.

The US Division of Justice (DoJ) talked about on Friday that Aman used to be the operator of a Ponzi procedure from Also can unprejudiced 2014 to Also can unprejudiced 2019. Along with his partners, Aman allegedly solicited individuals to invest in “diamond contracts,” by which their cash can be aged to get rid of wide, tough, uncut diamonds. 

These diamonds would then be prick and polished in expose to be resold at a profit. To instill trust in the group, Aman talked about that funds were backed by his contain bodily coloured diamond stock, apparently price $25 million. 

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As is the case with many Ponzi and accumulate-rich-like a flash schemes, patrons search records from to investigate cross-check a prick of the earnings and with out this, Ponzi schemes are exposed and collapse mercurial. Therefore, Aman allegedly aged investor funds to repay earlier investment “curiosity,” and as more patrons joined the pool, the transfer of funds down the chain persevered — with out any authentic profit received from diamond purchases. 

When funds ran low and the operator used to be at possibility of being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their cash into unique ‘provides’ in expose to get rid of Aman time to register unique patrons. 

Alternatively, this can now not carry on and not utilizing a waste in sight, and US prosecutors yelp that Aman characteristic up Argyle Coin as the Ponzi procedure used to be on the brink. Argyle Coin claimed to be a cryptocurrency-project backed by diamond trading, and as a new wave of investment poured into the coffers, most interesting a “piece of the cash got” used to be aged to fabricate a cryptocurrency token.

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As a substitute, the DoJ says the vast majority of the funds were aged to repay patrons from the earlier Ponzi program, under the names Pure Diamonds Investment Co. (Pure Diamonds) and Eagle Monetary Diamond Neighborhood Inc (Eagle). 

“At some level of the direction of the Ponzi procedure, Aman and his partners light over $25 million from hundreds of patrons,” prosecutors yelp. “Aman allegedly aged the cash to assemble purported curiosity funds to patrons, to pay industry prices, to pay commissions to the partners, and to enhance his contain lavish life-style.”

Investor funds were allegedly aged for purposes including housing rent, horse purchases, and driving classes.

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In 2019, the Securities and Alternate Commission (SEC) received an emergency court expose to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a quiz for a non permanent restraining expose and asset freeze while the cryptocurrency group used to be investigated. 

Aman is going thru prices of wire fraud, which could well well end result in up to 20 years on the assist of bars, moreover to restitution funds. 

Earlier and linked protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens equipped in exchange
  • IRS provides grants for tool to hint privateness-centered cryptocurrency trades
  • Lazarus neighborhood strikes cryptocurrency firm thru LinkedIn job adverts

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