- The US District Court of Southern Florida ordered the CEO of the Ponzi Scheme Argyle Coin to pay a $4.5 million fine.
- Moreover, based on the Court’s final judgment, Aman will no longer have to pay the fine.
On March 23, the US District Court of Southern Florida fined Argyle Coin Co-Founder Jose Angel Aman. About the fine, the Court claims that Aman ran a Ponzi Scheme activity which is considered a scam.
Furthermore, the Court instructed Aman to pay over $4.5 million as payback of its ill-gotten gains. However, the Court told Aman to pay the $4.5 million to no one but to the US Securities and Exchange Commission (SEC).
Based on a press release, the authority ordered Aman to pay an additional $300,000 penalty before the Court’s final judgment.
According to the SEC, Aman operated three Ponzi Schemes in a row in 2019. The scheme was a tricky web of fraudulent companies that promised a “risk-free” investment.
Aman got about $30 million from investors living in the US, Canada, and Venezuela to be precise. After he got the said amount, people saw that he was using the money to pay the old investors.
Additionally, Aman used part of the money for his expenses on designer-label clothing, renting, and more. As a result, the authority jailed Aman for 7 years for the misuse of the investors funds.
The SEC said,
Aman, Natural Diamonds, Eagle, and Argyle Coin, misused or misappropriated more than $10 million of investors funds to pay other investors their purported returns and for Aman’s expenses, including rent on his home, purchases of horses, and riding lessons for his son.
Based on the Court’s final judgment, Aman will no longer pay the fine. Also, the Court has banned him from a wide array of violations of securities acts, and securities exchange acts. Moreover, this type of scenario is not new in the crypto world. Therefore, traders and investors must be vigilant and practice due diligence prior to investing in the crypto world.
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