South African Man Charged in U.S. Court for Fraud Involving $28 Million in Bitcoin and Forex

South African Man Charged in U.S. Court for Fraud Involving $28 Million in Bitcoin and Forex
фото показано с : news.bitcoin.com

2020-9-5 06:45

A South African man has been charged with fraud in the Maryland District Court for allegedly scamming $28 million from over 1,000 investors.

Dennis Jali, a former resident of Maryland, targeted church-going African immigrants, promising them guaranteed returns on his supposed bitcoin (BTC) and foreign currency investment pool.

In a press statement, the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) said it jointly charged Jali and two accomplices for orchestrating the “Ponzi scheme”.

Arley Ray Johnson and John Frimpong, both of Maryland, fraudently solicited money from investors, who contributed $28 million to three companies – 1st Million LLC, Smart Partners LLC, and Access to Assets LLC, it said.

The duo compelled participants to trade in BTC and forex through pooled trading accounts controlled by Jali, added the statement. The alleged scheme operated from 2017 to 2020, drawing in more than 1,000 investors.

Investors were led to sign “secure contracts” that promised guaranteed returns of up to 30% per month. The conspirators allegedly told investors that their funds would be fully restored at the end of the pool participation term.

Johnson and Frimpong also touted Jali as a brilliant career trader who had made 1,700% in returns in a previous investment fund. The South African claimed in his online promotional videos that he had returned over 400% in gains within six weeks and that “my wife has never worked a day in her life.”

However, the trio did not invest any of the money in bitcoin or foreign currency, according to the CFTC charge. Instead, they turned the scheme into a Ponzi, using $18 million to pay selected investors, creating the illusion of profitability. Jali and his co-conspirators allegedly used $7 million of the pool money to buy luxury cars and fund other expensive lifestyles.

The CFTC charge is seeking full restitution to defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties and permanent trading bans for the three. The SEC also named Access to Assets as a relief defendant, “seeking the return of proceeds of the alleged fraud to which it had no legitimate claim.”

Jali fled the United States in May 2019 after being indicted by the U.S. Attorney for the District of Maryland but has since been arrested in South Africa, on federal charges of conspiracy, wire fraud, securities fraud, and money laundering.

What do you think about Dennis Jali’s alleged Ponzi scheme? Let us know in the comments section below.

The post South African Man Charged in U.S. Court for Fraud Involving $28 Million in Bitcoin and Forex appeared first on Bitcoin News.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Central African CFA Franc (XAF) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 XAF

african bitcoin maryland south million charged court

african bitcoin → Результатов: 126


Фото:

Huobi Mena Partners With AI Trader to Launch a Hybrid Intelligence Trading Mode

Huobi MENA, Huobi Global’s division concentrating on the African, Middle Eastern, and South Asian markets announced on Nov. 1st that it has partnered with AI Trader, an autonomous digital asset trading system powered by artificial intelligence (AI) to launch a hybrid trading platform that allows users to integrate deep learning AI in their trading activities.

2018-11-2 15:29


Фото:

Crypto Marketplace Paxful Demand for Cryptocurrency Reveals Growing on the African Continent

Cryptocurrency trading has widely been spread across the world, with significant concentrations collecting in Asia during recent years. On October 31, 2018, the peer-to-peer Bitcoin marketplace Paxful claims that the number of transactions from African consumers has soared significantly in recent times, mostly fueled by African millennials’ interest in the new space.

2018-11-2 09:00


Фото:

Patience Pays: Get to Know Popular Investor Reinhardt Coetzee

Ask any trader and they’ll tell you: diversifying your portfolio is one of the best ways to reduce risk. If you’re curious about branching out to other assets, definitely check out Reinhardt Coetzee — this South African Popular Investor is proof that low-risk, long-term investing can really pay off!  Since joining eToro in July 2016, Reinhardt has kept his risk.

2018-10-30 06:00


Фото:

Exchanges Roundup: SBI to Develop Wallet, Huobi Targets New Markets

In recent news pertaining to cryptocurrency exchanges, SBI Group has unveiled a partnership with Sepior that will see the companies jointly develop a proprietary wallet, Huobi has announced it is establishing an operational base in Dubai to target the African, Middle Eastern, and South Asian cryptocurrency markets, and Trijo, a Swedish crypto exchange, has received […] The post Exchanges Roundup: SBI to Develop Wallet, Huobi Targets New Markets appeared first on Bitcoin News.

2018-10-27 22:00


Фото:

Nigerian Startup Kubitx Launches Bitcoin Exchange in Beta

Kubitx, a Pan-African financial technology startup registered in Malta, announced the beta launch of its new cryptocurrency exchange on Thursday. The platform, which supports seven digital coins for the test, including BCH and BTC, will initially be available to users in Nigeria, before the company expands it to other African countries in the coming months.

2018-10-12 00:30


Фото:

With Bitcoin Cash, A Namibian Conservationist Hopes To Save Endangered African Wild Dog

In Namibia, the African wild dog population has been decimated to near extinction. But one wildlife lover is trying to stop all that. And bitcoin cash (BCH) is her gateway. Also read: Kucoin Expands Into Australia After $3m Bitcoin Australia Deal Leroux Gets First BCH Transfer In Namibian Wild Nadja Leroux, a Namibian wildlife conservationist looking […] The post With Bitcoin Cash, A Namibian Conservationist Hopes To Save Endangered African Wild Dog appeared first on Bitcoin News.

2018-9-12 08:35


Фото:

A South African Township Is Becoming the New Gold Mine for Bitcoin

In several African nations, sending money to friends and family is difficult. Using bank accounts could be easy, but it takes days, sometimes even weeks, for transactions to clear. A new CNBC documentary is exploring the nuances of this emerging market and how exactly it is used to make the underbanked communities of the continent […] A South African Township Is Becoming the New Gold Mine for Bitcoin was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

2018-8-28 21:28


Фото:

Ecobank Report Finds Significant Presence of Crypto in 36 African Countries

A report published by the pan-African bank, Ecobank Transnational Inc. , has found that despite cryptocurrencies exerting a notable presence in each of the 36 African countries in which the company operates, only South Africa and Swaziland have adopted a “generally favorable and permissive [regulatory] stance” pertaining to cryptocurrencies.

2018-8-10 10:25


Фото:

Exchanges Round-Up: Goldman Considers Crypto Custody, SA Exchange Launches USDT

In recent news pertaining to cryptocurrency exchanges, it has been reported that Goldman Sachs is considering exploring custody and other services pertaining to cryptocurrencies; a South African exchange has introduced Tether pairings in the hopes of driving down the local premium on crypto prices through offering arbitrage opportunities to foreign traders; and Blockex has announced […] The post Exchanges Round-Up: Goldman Considers Crypto Custody, SA Exchange Launches USDT appeared first on Bitcoin News.

2018-8-9 08:25


Фото:

Officials in South Africa Propose VAT-Exemption for Bitcoin Trades

Cryptocurrencies are becoming more prevalent to residents living in South Africa and over the past year bitcoin interest stemming from the region has grown exponentially. Furthermore, just recently the South African Treasury has proposed a few amendments that apply to the country’s Taxation Laws Amendment Bill (TLAB) and how cryptocurrencies are taxed.

2018-7-28 23:45


Фото:

‘I Wish I’d Invested In Cryptocurrency,’ Say 38 Percent Of South Africans

38 percent of South Africans “wish they had invested” in cryptocurrency as businesses report “decent” interest in the emerging technology from corporate investors. 40 Percent of South Africans ‘Aware’ of Crypto Results of pan-African investment bank Old Mutual’s 2018 “Savings & Investment Monitor,” released this week, reveal attitudes to Bitcoin locally are swiftly transforming.

2018-7-13 01:00