An individual has been taken in remission from Washington, D.C., for operating a diamond investment scam with its own crypto asset to fund his “lavish lifestyle.”
As per the regulators, Aman along with his partners had solicited investors residing within the United States & Canada for a diamond Ponzi scheme adding that he would purchase rough colored diamonds and cut, polish, and resell them for profits.
He promoted the investment as high returns with no risk, Aman added that the scheme was backed by a $25 Mln inventory of diamonds, consistent with the allegations.
However, the prosecutors claim Aman “rarely” used investments to purchase rough diamonds and never refined and resold them; the $25 Mln inventory was also an alleged falsehood.
Aman instead invested interest payments to earlier investors using newer investors’ money & persuaded investors to roll over their investments by falsely claiming their investments were at full value.
Prosecutors alleged that, when the scheme, was approaching near to collapse, Aman launched a new diamond-back cryptocurrency named Argyle Coin & thereby further defrauded the investors.
Again, money from earlier investors was allegedly employed to play “interest” to the earlier investors.
The schemes fleeced “hundreds” of investors for over $25 Mln’s, consistent with the allegations, while Aman allegedly used several of the investor’s funds to “support his own lavish lifestyle.”
Aman made his initial court appearance in West Palm Beach, Florida, earlier in last week.
Also earlier in May, the United States SEC [Securities and Exchange Commission] sentenced to halt the operations of Aman, Argyle coin, and other entities he operated over similar allegations.