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

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

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

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

Prosecutors dispute that Jose Angel Aman, from Washington, DC., operated a unfounded investment scheme throughout the United States and Canada, luring investors with promises of expeditiously returns in the diamond exchange.

The US Division of Justice (DoJ) mentioned on Friday that Aman was the operator of a Ponzi scheme from Could per chance well 2014 to Could per chance well 2019. With his companions, Aman allegedly solicited participants to make investments in “diamond contracts,” wherein their money could be weak to comprehend tremendous, rough, uncut diamonds. 

These diamonds would then be prick and polished in account for to be resold at a profit. To instill belief in the organization, Aman mentioned that funds had been backed by his private bodily coloured diamond inventory, it appears to be like worth $25 million. 

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As is the case with many Ponzi and gather-filthy rich-expeditiously schemes, investors set a query to to idea a prick of the earnings and with out this, Ponzi schemes are exposed and fall down expeditiously. Which capability truth, Aman allegedly weak investor funds to pay off earlier investment “hobby,” and as more investors joined the pool, the transfer of funds down the chain persisted — with out any genuine profit bought from diamond purchases. 

When funds ran low and the operator was at likelihood of being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their cash into fresh ‘provides’ in account for to comprehend Aman time to signal in fresh investors. 

Nonetheless, this could also no longer protect on with out destroy, and US prosecutors say that Aman residing up Argyle Coin because the Ponzi scheme was on the verge of fall down. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond buying and selling, and as a unique wave of investment poured into the coffers, easiest a “portion of the money obtained” was weak to impression a cryptocurrency token.

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As a replace, the DoJ says the majority of the funds had been weak to pay off investors from the outdated Ponzi program, below the names Pure Diamonds Investment Co. (Pure Diamonds) and Eagle Financial Diamond Community Inc (Eagle). 

“At some stage all around the Ponzi scheme, Aman and his companions quiet over $25 million from hundreds of investors,” prosecutors say. “Aman allegedly weak the money to plan purported hobby payments to investors, to pay commercial prices, to pay commissions to the companions, and to abet his private lavish standard of living.”

Investor funds had been allegedly weak for functions including housing rent, horse purchases, and riding lessons.

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In 2019, the Securities and Alternate Price (SEC) bought an emergency courtroom account for to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a quiz for a short restraining account for and asset freeze while the cryptocurrency organization was investigated. 

Aman is going through prices of wire fraud, which could outcome in as much as 20 years in the support of bars, to boot to restitution payments. 

Outdated and related coverage

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  • Lazarus group strikes cryptocurrency company through LinkedIn job adverts

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