Man Gets 6 Years for $25M Diamond and Crypto Ponzi Draw
A South Florida federal district hold sentenced a Washington, D.C., man to six years in federal penal advanced for operating a $25 million diamond funding plot that integrated a crypto part. He have to additionally pay over $23 million in sufferer restitution.
The accused, Jose Angel Aman, and his companions had been sentenced by U.S. District Retract Rodolfo A. Ruiz II of the Southern District of Florida for soliciting funds from other folks in the US and Canada for purported diamond contracts.
Aman and his companions promised investors the money was once agreeable and backed by a checklist of actual diamonds, the U.S. Division of Justice (DOJ) said, nonetheless Aman “generally extinct investors’ money to take care of, decrease and resell rough diamonds. Nor did Aman absorb a $25 million diamond inventory.”
- The DOJ said Aman additionally had a cryptocurrency venture, Argyle Coin, LLC, that was once situation up easiest after funds for the traditional diamond funding plot began to dry up.
- Whereas the accused solicited fresh funds on the pretext of increasing a crypto token backed by diamonds, the announcement said easiest a half of the funds had been extinct to manufacture that token and the relaxation went to “purported curiosity funds to the earlier investors and to assist himself and his companions.”
- “To cloak the fraud, Aman made purported curiosity funds to existing investors with money from fresh funding victims. At the prime of the funding duration, Aman and the companions would persuade the investors to roll over their money by falsely claiming that the investors had the stout payment of their investments to position into fresh deals,” in preserving with the DOJ. These “Reinvestment Contracts” had been extinct to determine time till Aman can also stumble on fresh investors and extra money, DOJ added.