The U.S department of Justice is looking to extradite Swedish citizen for money laundering, wire fraud and securities fraud through a crypto scam amounting to $11 million USD.
The blockchain world has long been troubled by the scams, thefts and hacks prevalent on the users’ private keys. Additionally, Ponzi schemes, pyramid schemes and fraudulent fundraisers are causing losses for investors across the industry. This latest case from the United States Department of Justice (DoJ) is one of the long-standing acts of fraudulent behavior killing the adoption process in the cryptocurrency industry.
The statement from the DoJ released on Wednesday claims Swedish citizen Roger Nils-Jonas Karlsson alongside his associate company, Eastern Metal Securities (EMS) are facing charges of securities fraud, wire fraud and money laundering. The complaint to extradite the Swede was filed back on March 4th and unsealed this week.
The complaint was filed by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David L. Anderson for the Northern District of California and Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office.
The statement reads,
“Roger Nils-Jonas Karlsson and his company, Eastern Metal Securities (EMS), were charged with engaging in a scheme to defraud victims of more than $11 million.”
Rodger is said to have started the defrauding activities back in 2006 and raised funds from investors with pretentious representation of their investment products. One product is the “Pre Funded Reversed Pension Plan” (PFRPP).
The Pre Funded Reserved Pension Plan (PFRPP)
This particular investment vehicle was used by Rodger and the EMS to defraud investors by inviting them to buy a share of the product and receive gold in return after a number of installments. Caps were raised however when the price of the share was revealed to trade at $98 USD and the investment payout at 1.15 kg of gold for every share. Investors raised questions on how the payout will actually happen, to which Karlsson responded that 97% of the amount is guaranteed to be returned if no gold payout was made – no payouts have been made yet.
In an investigation on the company and the investment product, the government authorities found out that Karlsson was using a fake name to dupe the potential investors. Additionally the funds collected by EMS and Karlsson were tied up in a real estate in Thailand furthermore no account owned by the scammer would pay off the amount owed.
The HCI25 Scam by Karlsson
Rodger and his company have further been accused of having been involved other scams including the HCI25 scam that promised potential investors returns on their investment while no investment was even being made by the company. The statement reads,
”Karlsson allegedly brought the investors in HCI25 together with the investors in the PFRPP and posted multiple communications to delay the moment investors would realize there would be no payout.”
When the perpetrator knew he could not make the payouts to the investors, he defrauded the investors by constructing lies on their investments. First, he told them that EMS was working with the Securities Exchange Commission (SEC) in the U.S. to release the funds. Furthermore, Rodger told the investors that he would not give them the full payout citing liquidation issues if a huge chunk of finances is to be withdrawn from the organization.
The U.S DoJ is requesting the Swedish authorities to release the scammer to be tried in the United States given his operations were heavily involved in the country.
- Source: First Appeared Here
- Published Time: 2019-06-20 15:25:37
The views and opinions expressed in the article US DoJ Seeks Extradition of Swedish Citizen Who Is Charged with $11 Million Crypto Fraud Scheme do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research.
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