US citizen charged with working diamond Ponzi scheme, cryptocurrency scam

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US citizen charged with working diamond Ponzi scheme, cryptocurrency scam

US citizen charged with working diamond Ponzi scheme, cryptocurrency scam

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

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a unfounded investment scheme across the United States and Canada, luring investors with promises of fleet returns in the diamond commerce.

The US Department of Justice (DoJ) acknowledged on Friday that Aman changed into once the operator of a Ponzi scheme from Might possibly possibly 2014 to Might possibly possibly 2019. Alongside with his companions, Aman allegedly solicited folks to make investments in “diamond contracts,” in which their money would be old to purchase ravishing, rough, uncut diamonds. 

These diamonds would then be decrease and polished in repeat to be resold at a revenue. To instill belief in the organization, Aman acknowledged that funds had been backed by his delight in bodily colored diamond stock, it seems worth $25 million. 

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As is the case with many Ponzi and rating-filthy rich-fleet schemes, investors question to scrutinize a decrease of the profits and without this, Ponzi schemes are uncovered and crumple immediate. Which capability truth, Aman allegedly old investor funds to pay off earlier investment “passion,” and as more investors joined the pool, the transfer of funds down the chain continued — with none legitimate revenue received from diamond purchases. 

When funds ran low and the operator changed into once at threat of being uncovered, he allegedly created “Reinvestment Contracts” to entice users to roll over their money into novel ‘affords’ in repeat to purchase Aman time to bear a study in novel investors. 

Alternatively, this couldn’t follow it without waste, and US prosecutors bid that Aman region up Argyle Coin as the Ponzi scheme changed into once on the brink. Argyle Coin claimed to be a cryptocurrency-project backed by diamond trading, and as a unusual wave of investment poured into the coffers, only a “half of the money got” changed into once old to fabricate a cryptocurrency token.

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As a replacement, the DoJ says the broad majority of the funds had been old to pay off investors from the earlier Ponzi program, underneath the names Natural Diamonds Funding Co. (Natural Diamonds) and Eagle Financial Diamond Neighborhood Inc (Eagle). 

“Throughout the direction of the Ponzi scheme, Aman and his companions gentle over $25 million from a complete lot of of investors,” prosecutors bid. “Aman allegedly old the money to rating purported passion payments to investors, to pay industry prices, to pay commissions to the companions, and to reinforce his delight in lavish every day life.”

Investor funds had been allegedly old for functions together with housing rent, horse purchases, and using lessons.

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In 2019, the Securities and Trade Commission (SEC) received an emergency court docket repeat to freeze Argyle Coin’s operations. The US District Court for the Southern District of Florida granted a seek files from for a immediate restraining repeat and asset freeze while the cryptocurrency organization changed into once investigated. 

Aman is facing prices of wire fraud, which would possibly result in as a lot as 20 years in the relief of bars, to boot to restitution payments. 

Old and connected protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens offered in alternate
  • IRS affords grants for utility to ticket privacy-focused cryptocurrency trades
  • Lazarus personnel strikes cryptocurrency firm by strategy of LinkedIn job adverts

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