Recent Filing From SEC Takes Action Against Three Individuals For Alleged Ponzi Scheme
A recent filing from the United States Securities and Exchange Commission (SEC) takes action against three individuals for allegedly raising millions of dollars against more than 1,000 victims.
The legal filing stated:
“From 2017 to May 2019, Jali, Frimpong, and Johnson, directly and through two entities created to perpetrate the scheme, Smart Partners and 1st Million (the ‘Companies’), fraudulently raised more than $27 million from approximately 1,200 investors, many of them African immigrants.”
It has been reported that the allegations claim the three individuals used their influence in churches and health care, preying on commonalities and beliefs of those around them for financial gain. Johnson claimed to be a minister, while Jali reportedly pastored at seven church locations, as noted in the legal document.
However, leading investors believed that they would make a profit on crypto and Forex on their behalf, the accused parties allegedly claimed themselves as experts, promising to give back initial invested capital one year later.
Three parties allegedly swindled millions of dollars from trusting investors as part of a $crypto and #Forex scheme, @benjaminpirus reports. https://t.co/JAWBkOW0Y3 — Cointelegraph (@Cointelegraph) August 28, 2020
The filing states the defendants spent this money on themselves instead of using it as advertised.
Also, the filing states:
“From 2017 to May 2019, Defendants offered and sold to investors in Maryland and several other states, including Georgia, Florida, and Texas, among others, contracts with the Companies in which they falsely promised, among other things, to generate profits for investors by trading Forex and cryptocurrency.”
The document notes a $5,000 minimum investment as their common requirement, advertising gains between 6% and 42% per month or financial quarter.
Thus, the accused allegedly paid out some of the earlier investors at times to ward off suspicion.
Source: Cointelegraph | Image: Commercial Property Executive
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