A South Florida federal district choose has sentenced Jose Angel Aman to 84 months in jail for his function in perpetrating a $25 million diamond Ponzi scheme. In addition, the choose ordered Aman to pay over $23 million in restitution to victims who invested in his diamond chopping enterprise and the purported diamond-backed crypto token.
Fraudulent Claims and Promises
In a press release, the U.S. Department of Justice (DOJ) says Aman and his unnamed companions efficiently recruited a whole bunch of individuals after convincing them “to put money into diamond contracts.” The assertion provides that the recruitment, which focused American and Canadian residents, occurred between May 2014 and 2019.
Victims responding to the accused’s solicitations have been instructed their cash could be used “to buy tough colored diamonds for Aman to chop, polish and resell at a revenue.” Still, to be able to bolster the enchantment of the enterprise, the DOJ alleges that Aman and his companions resorted to lies. The DOJ assertion explains:
They reassured traders that their cash was protected as a result of it was secured by Aman’s stock of diamonds (purportedly valued at $25 million). Aman and his companions introduced the funding as a excessive return, no-risk deal.
The DOJ asserts that the guarantees and statements have been false as a result of “Aman hardly ever used traders’ cash to buy, lower, and resell tough diamonds.” In addition, Aman didn’t have a $25 million diamond stock as he claimed.
Still, to be able to conceal the fraud and due to this fact maintain the Ponzi scheme, Aman “made purported curiosity funds to current traders with cash from new funding victims.” Next, the scammer and his companions satisfied the early victims to roll over their investments. According to the DOJ, this “tactic (was) used to purchase time till Aman might find new traders and extra cash.”
The Diamond-Backed Crypto Token
However, when the Ponzi scheme was about to break down, Aman modified his technique by establishing a brand new firm generally known as Argyle Coin. This firm could be in “the enterprise of creating a cryptocurrency token backed by diamonds.” Detailing how Aman’s new tactic additionally failed, the DOJ assertion says:
Aman solicited new traders for Argyle, promising excessive charges of return with no danger. Aman used solely a fraction of the cash acquired from Argyle traders to develop a cryptocurrency token. He used most of it to pay purported curiosity funds to the sooner traders and to learn himself and his companions.
The DOJ says Aman used a few of the traders’ funds to help “his lavish life-style.”
What do you consider Aman’s sentencing? Share your ideas within the feedback part beneath.
The publish Man Jailed for Role in $25 Million Ponzi Scheme Involving a Failed Crypto appeared first on Bitcoin News.