Retiree loses $1m in timeshare fraud by Mexican drug cartel known for cannibalism

Two California retirees say they lost nearly $1 million after falling victim to a bizarre timeshare scam run by a notorious Mexican drug cartel that is known for horrifying claims of cannibalism.

The rapidly evolving scam, run by the Jalisco New Generation cartel (CJNG), is estimated to have fleeced hundreds of millions of dollars from Americans each year, including James, 76, and his wife Nicki, 72, who were looking to sell their Lake Tahoe timeshare.

James, who bought the property in the mid-90s for about $9,000 but only stayed there twice, jumped at the opportunity when he received a call from a real estate agent named Michael in October 2022 who offered to buy the timeshare.

“He was good at ingratiating himself,” James told DailyMail.com. “He had an air of confidence. I thought ‘This guy’s legit.’”

The scam is run by the Jalisco New Generation cartel (CJNG). REUTERS

The agent, who James only realized later had a slight Spanish accent, claimed to have found a Mexican investor willing to pay upwards of $22,000 for the property.

The cartel, known for drug trafficking, gruesomely slaughtering their enemies in public and forcing recruits to be trained in cannibalism at “terror schools,” has netted hundreds of millions of dollars over the past decade preying on elderly American timeshare owners in similar schemes.

Days after their initial call, Michael called back to say would require $2,600 to cover the cross-border transaction, which he assured James would be reimbursed.

James, who did not share his last name with the Daily Mail, admitted his wife had concerns about the deal from the beginning, but he was reassured when Michael said the buyer would send the cash to US Commercial Escrow Corps, a company with a registered address in Manhattan.

The cartel has reportedly stolen hundreds of millions of dollars from elderly Americans with timeshares. AP

James even spoke with a representative of the company, who he said spoke with an American accent.

He was then hit with a second fee, costing $3,600.

“I felt alright,” James said. “I thought ‘I’m getting reimbursed for this, all will be well.’”

Eventually, the fees racked up to $50,000, at which point James was contacted by a man who claimed to be with the UIF, Mexico’s financial intelligence unit. The man claimed James had committed several violations and would be extradited if he did not pay even heftier fines.

All the while, James said the money always appeared in the New York escrow account, though no funds were ever released.

James and his wife lost nearly $1 million dollars from the scam.

He was then convinced by the fraudsters to invest $32,000 in a sustainable housing investment in Mexico, eventually making a dozen payments for a variety of reasons.

James says he made his last payment in January, spending a stunning $890,000 across several bank accounts in Mexico.

To fund the payments he had to borrow $150,000 from his daughter and sell his childhood home.

James soon uncovered some worrying details, including that the website for the Atlanta real estate agency Michael claimed to be part of had been taken down days after their first phone call.

He also found that the email address he had for a contact at the Bank of Mexico was registered in Arizona, and unexplainably, Reykjavik, Iceland.

Timeshare owners desperate to offload them are particularly vulnerable to the scam.

“None of them had any addresses or locations in Mexico,” James said.

The office for the US Commercial Escrow Corps also did not exist, the outlet reported.

James then contacted Mike Finn, a lawyer who has represented thousands of people facing similar scams.

According to Finn, timeshare owners are especially vulnerable when it comes to these scams because many are desperate to offload them, so when an offer comes in “their excitement blinds them to the details.”

Once the money has been sent to Mexico, it’s more difficult to recover, and the FBI can only investigate with cooperation from local authorities. American lawyers are also unable to file civil suits beyond their jurisdiction, Finn explained.

American timeshare owners have been scammed out of $288 million over the last five years, including from frauds run by the Jalisco New Generation.

The “elaborate” scam cost James his life savings — and left his wife infuriated with him.

“It was very elaborate,” he said. “That’s why I was sucked in. I just thought there were too many players involved for it to be a scam.”

He added: “My wife said from the start that it didn’t sound right. Obviously, I should have listened to her. She’s p—– about the whole thing. But she’s kind of resigned herself to the fact that I was the stupid one.”

Check out our Latest News and Follow us at Facebook

Original Source

Peaches Stergo admits to stealing $2.8 million from Holocaust survivor

A heartless Florida woman admitted to scamming an 87-year-old Holocaust survivor she met on a dating site out of a jaw-dropping $2.8 million, federal prosecutors announced.

Peaches Stergo’s years-long fraud cost the elderly victim his life savings while she lived a life of luxury that included a house in a gated community, a Corvette, lavish vacations and designer items, including Rolex watches, the US Attorney’s Office for the Southern District of New York said in a Friday news release.

In total, the victim signed off on 62 checks totaling almost $3 million that went right into Stergo’s coffers and he ultimately lost his apartment from the romance scam.

Starting in early 2017 — after the 36-year-old woman met the man on a dating site — she asked the victim to borrow money to pay her lawyer who she said refused to fork over funds from an injury settlement, according to the feds.

She claimed the funds were put into a TD Bank account, but evidence indicates she never received a cent from a supposed injury settlement.

Over the next four-and-a-half years, Stergo’s web of lies steadily continued, draining the Holocaust survivor of his final pennies.

She demanded the victim deposit money into her bank accounts because she claimed if not, they would be frozen and he would never get any of the money back that he loaned her, the US Attorney’s Office said.


United States Attorney Damian Williams slammed the fraudster in a statement.
justice.gov

He continued loading money into two accounts belonging to Stergo, who at one point even created a fake email account and fake invoices that were supposed to look like it came from a TD Bank employee, the feds said.

Stergo pleaded guilty to one count of wire fraud and faces up to 20 years in prison. She was also ordered to pay $2.8 million in restitution and forfeit the same amount, including the more than 100 luxury items she bought including designer clothes, purses and lots of jewelry. 

“Peaches Stergo stole the life savings from an 87-year-old Holocaust survivor who was just looking for companionship.  This conduct is sick – and sad,” US Attorney Damian Williams said in a statement. “… Thanks to the hard work of the FBI and this Office, Stergo is being held accountable for her fraud.”

Stergo also bought a boat and other cars on top of the house and Corvette she purchased. Some of the fancy items she scooped included from companies like Tiffany, Ralph Lauren, Neiman Marcus, Louis Vuitton and Hermes. 

She’ll be sentenced July 27. 

Check out our Latest News and Follow us at Facebook

Original Source

Hunter Biden pal Devon Archer stiffing Sioux fraud victims: feds

A Hunter Biden business partner convicted of swindling a poor Native American tribe out of tens of millions of dollars hasn’t paid a cent back to his victims as ordered by a New York judge, according to court filings. 

Manhattan federal prosecutors wrote Wednesday that more than a month has passed since fraudster Devon Archer received a demand for payment of the debt – and he now owes his victims a total of $43,954,416.75. 

“As of April 5, 2023, Archer has paid nothing toward the judgment and the outstanding restitution balance,” Assistant US Attorney Melissa Childs wrote in the so-called writ of garnishment. 

Prosecutors are now seeking to seize property controlled by Archer from a trust company and a life insurance company in order to begin repaying his victims, according to the court filing. 

US District Judge Ronnie Abrams will have to approve the prosecutors’ request to begin that process. An attorney for Archer did not immediately respond to request for comment. 

Abrams sentenced Archer to more than a year in prison in February 2022 after his conviction on conspiracy to commit securities fraud and securities fraud charges for his role in the scheme to defraud the Oglala Sioux. 


Devon Archer was sentenced to more than a year in prison in 2022 for his role in the fraud scheme.
Alec Tabak

Archer has been allowed to remain free while he appeals his conviction and sentence. 

Archer and his co-defendants issued a community corporation controlled by the Native American tribe some $60 million in bonds. Instead of returning a promised annuity, they used the cash to build a “financial services mega company,” prosecutors charged. 

“Archer became a key player in the scheme, anticipating that, when the scheme succeeded, he would helm the resulting conglomerate and, ultimately, reap massive profits from its sale,” prosecutors wrote in a sentencing submission for Archer. 


Devon Archer was a close pal of Hunter Biden and served on the board of Burisma with the first son.
FOX News/Tucker Carlson Tonight

Before he was busted by the feds, Archer had a close relationship with Hunter Biden and helped land the president’s son a seat on the board of Burisma, a Ukrainian energy company. Biden was not involved in the Native American fraud scheme.

Archer also accepted a board seat at Burisma, a job highlighted by his attorney in a court filing prior to his sentencing in the bond case. 

“As has been reportedly endlessly, he joined the board of directors of Burisma Holdings in Kiev [sic], Ukraine,” his attorney wrote. 

“What the news reports fail to mention is that Mr. Archer provided real value to Burisma, and he was responsible for helping to found and develop the Burisma Holdings subsidiaries Burisma Kazakhstan and Burisma Geothermal,” they added.

Check out our Latest News and Follow us at Facebook

Original Source

Gov. Hochul’s security detail under investigation

State Police investigators are probing whether troopers in Gov. Kathy Hochul’s security detail have been cheating taxpayers by claiming they’re on the clock when they’re actually blowing off their shifts, The Post has learned.

The probe is focused on members of the governor’s detail stationed in New York City — and those troopers under scrutiny have already been removed from their post and could face disciplinary action if the allegations are confirmed, state police officials told The Post on Monday.

The governor’s detail includes a rotating group of more than 40 troopers and supervisors, law-enforcement sources said.

The New York State Troopers’ Internal Affairs Bureau is probing claims that at least some of them had their records falsified so that they could still get paid even when they weren’t working, sources said.

Some of the troopers are specifically accused of having colleagues sign them in on timesheets and then simply not showing up for their shifts, sources said.


New York Gov. Kathy Hochul’s state-police security detail is under investigation because some members may have falsified records to get paid while blowing off their shifts.
The Washington Post via Getty Images

IAB investigators grilled several troopers in Hochul’s detail last week about the allegations, with more officers expected to be questioned later this week, according to sources.

The probers also are reviewing everyone’s timesheet, sources said.

In a statement Monday, state police spokesman William Duffy confirmed that the agency “has launched an administrative investigation into time and attendance issues involving members of the Protective Services Unit.


The governor’s security detail is the focus of an internal state-police probe.
Larry Marano

“Integrity is one of our core values and we thoroughly investigate any claims of wrongdoing,” Duffy said. “If our investigation determines that our policies were violated, the state police will take appropriate disciplinary action.”

Hochul, who was elected last year after taking office in 2021 to replace disgraced former Gov. Andrew Cuomo, is assigned three different security details to protect her: in Albany, New York City and when she is at her home in Buffalo. 

The sources said each of the Albany and New York City details consists of four troopers and one supervisor when they’re on duty, with the details drawn from the larger group.


Gov. Hochul has more than 40 state troopers in her revolving security detail for when she is in New York City, Albany and Buffalo.
Pacific Press/LightRocket via Getty Images

Members of the same rotating group guard Hochul when she’s at home in Buffalo, although it is unclear how many personnel that involves. 

The state police said it does not confirm details of security deployments or how many troopers are assigned to each location for safety reasons.

The allegations of time-clock cheating surfaced earlier this month, the sources said. 

Officials in the governor’s office did not respond to requests from The Post seeking comment on the probe Monday. 

Additional reporting by Zach Williams in Albany

Check out our Latest News and Follow us at Facebook

Original Source

Bill Ackman says Adani Group allegations ‘highly credible,’ compares to Herbalife

Hedge-fund billionaire Bill Ackman endorsed Hindenburg Research’s allegations of fraud at Adani Group as “highly credible” on Thursday – and even likened the India-based conglomerate to Herbalife, the supplements seller that he tried and failed to topple after calling it a “pyramid scheme.”

“Adani’s response to @HindenburgRes is the same as @Herbalife’s response to our original 350-page presentation. Herbalife remains a pyramid scheme,” the Pershing Square Capital boss tweeted on Thursday night.

“I found the Hindenburg report highly credible and extremely well researched. @AdaniOnline response speaks volumes. Caveat emptor,” added Ackman, who after an arduous five-year battle, exited his short position on Herbalife in 2018.

Led by Gautam Adani, the world’s fourth-richest person, the sprawling Adani Group business empire has lost more than $51 billion in value in two days of trading since the damning allegations surfaced, according to Bloomberg. India’s stock market was closed for a holiday on Thursday.

Ackman said his firm was “not invested long or short in any of the Adani companies or Herbalife” at present and has not done any research to corroborate Hindenburg’s claims. He said his tweet on the subject were based on his own “judgment” rather than due diligence.

The Post has reached out to Adani Group and Herbalife for comment on Ackman’s remarks.


Gautam Adani is chairman of Adani Group.
AFP via Getty Images

The flagship entity Adani Enterprises declined by nearly 19% in Friday trading in what was its steepest plunge since 2017. Hindenburg’s report surfaced just before Adani Enterprises embarked on a $2.5 billion share sale.

Hindenburg accused Adani of leading “the largest con in corporate history” through stock manipulation and other alleged malfeasance. The influential firm said it had taken a short position on Adani and indicated its findings were based on a two-year investigation.


Hindenburg alleged that Adani Group has engaged in a sweeping fraud.
SOPA Images/LightRocket via Gett

“We have uncovered evidence of brazen accounting fraud, stock manipulation and money laundering at Adani, taking place over the course of decades,” Hindenburg claimed in the note.

Adani Group described the allegations as “baseless” and said it was exploring potential legal action against Hindenburg. The India-based corporate giant also suggested that Hindenburg had a clear financial interest in seeing its shares fall.


Gautam Adani is the world’s fourth-richest person.
AP

“We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public,” Adani Group legal officer Jatin atin Jalundhwala said in a statement.

In response, Hindenburg said Adani “hasn’t addressed a single substantive issue we raised” and that it would “welcome” a lawsuit.

“If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in a legal discovery process,” Hindenburg said.



Check out our Latest News and Follow us at Facebook

Original Source

Todd and Julie Chrisley’s fall from grace: The inside story

When the Chrisley family burst onto the reality scene in 2014 with USA Network’s “Chrisley Knows Best” they were the Southern-blond answer to the Kardashians: wealthy and extremely tight knit, with a dollop of “bless your heart” attitude.

In an early promo for the show, Todd Chrisley, the flamboyant, controlling-but-endearing patriarch bragged about the money he supposedly made in real estate. He was quick to note that his family — wife Julie and their three children, Chase, Savannah and Grayson, now ages 26, 25 and 16 respectively, along with Todd’s children from an earlier marriage, Lindsie, now 33, and Kyle, 31 — lived in a gated community outside of Atlanta. They were neighbors with former Braves great Chipper Jones and singer Usher, Chrisley boasted, and the fam dropped a cool $300,000 a year on clothing alone.

The Chrisley family pose for a portrait during their first season. (Pictureed left to right) Savannah Chrisley, Lindsie Chrisley Campbell, Julie Chrisley, Todd Chrisley, Kyle Chrisley, Chase Chrisley, Grayson Chrisley
NBCU Photo Bank/NBCUniversal via

“I try to keep everything in order and in line. I have a certain level of expectations for my children, for my wife, for myself,” Chrisley, now 53, said in the promo.

But the family’s wealthy facade all came crumbling down last spring when Todd and Julie were found guilty of bank fraud and tax evasion in a sensational trial. Now the show’s over: On Tuesday, Todd and Julie will report to prison, where he’s been sentenced for 12 years and she to seven.

“The Chrisleys have built an empire based on the lie that their wealth came from dedication and hard work,” prosecutors wrote in a sentencing memorandum on Nov. 16.

“The jury’s unanimous verdict sets the record straight: Todd and Julie Chrisley are career swindlers who have made a living by jumping from one fraud scheme to another, lying to banks, stiffing vendors, and evading taxes at every corner.”

Todd and Julie Chrisley leaving Atlanta Federal Court in August 2022.
FOX 5 Atlanta

The couple had humble, wholesome beginnings. They both hail from rural Westminster, South Carolina, a once-thriving textile town that as of 2021 had a population of around 2363.

Their money troubles go back years, before they even had a reality show. In 2012, Chrisley filed for Chapter 7, listing $4.2 million in assets and $49.4 million in debt. At the time, he claimed to have only $55 in a checking account and $100 in cash.

“He guaranteed a real estate development loan and it failed,” his attorney Robert Furr explained to People in 2014. “He was on the hook for $30 million. If he hadn’t had that happen, he would have been fine, financially.”

Such money issues didn’t keep the family from reality stardom. By the end of 2016, the Chrisley’s show was already in its fourth season and the clan’s profile was on the rise — so much so that security concerns led them to relocate to Nashville.

Todd and Julie Chrisley in 2018.
Getty Images

There, they bought two mansions worth roughly a combined $9 million and continued to drive flashy cars while their kids became podcasters and Instagram influencers with millions of followers.

Amid his success, Chrisley offered to donate money in 2016 and build an aquatic center in his hometown of Westminster with one condition: It had to be named for his late father Gene Chrisley.

But what looked like a generous gesture from a hometown boy-made-good quickly devolved into an ugly conflict that divided the locale and showcased Todd’s uncanny ability to whip up drama even when the cameras weren’t rolling.

“Most doubted the offer was sincere, but the [town] council remained open in learning more,” former town administrator Chris Carter told The Post.

The Chrisley family in the in a season 8 promo.
NBCU Photo Bank via Getty Images

When the project stalled, Todd took to Facebook blasting detractors, some of whom were private citizens of Westminster. He bragged about his show’s ratings and flashed their Facebook profiles across the screen, urging his own followers to confront them online.

“Facebook brought out the trolls who posted pretty negative things about the town because of the city’s perceived reticence to take Chrisley [up] on the offer. Lots of them, I understand, did not even live in the Westminster area — the show’s groupies I suppose,” said Carter.

He added that Todd then created an additional stipulation for his donation: that the town’s council, except for one woman, resign.

Todd and Julie Chrisley purchased this six-bedroom, 10-bathroom home back in 2019 for $3,37 million.
Zeitlin Sotheby’s International

“Most peple felt like in the town they were being played and it turned out they were. Other than for the show drama of it, there was nothing substantive ever talked about. It was all to gin up animosity and division,” continued Carter.

In the end, no money was donated and no pool was built. A few locals said the saga, which was covered in the local press, was just another chapter in the ostensibly fabulous life of the self-styled mogul.

“He’s all hat and no cattle,” quipped one local. (Chrisley did not respond to a request for comment on the matter.)

Meanwhile, the family’s personal dramas were making for good TV.

Back in 2015, Todd Chrisley posed behind bars as a joke.
Todd Chrisley /Facebook

While it often focused on lighthearted family conflict such as sibling rivalry, Savannah’s pageants and household pranks, “Chrisley Knows Best” didn’t shy away from serious issues. Kyle struggled with drug addiction and mental health, so much so that Todd and Julie legally adopted his daughter Chloe, now 10, when she was a toddler.

In 2019, Savannah and Chase launched their own spinoff, “Growing Up Chrisley.” It would go on to run for four seasons — until Todd and Julie were convicted, at which point both it and “Chrisley Knows Best” were abruptly canceled.

The trial also took an ax to Todd’s reputation of being a devoted family man. His former business partner Mark Braddock testified that he and Todd were intimate for about a year in the early 2000s.

Chrisley has denied the claims.

Todd Chrisley and his family in happier times.
NBCU Photo Bank/NBCUniversal via

“What insulted me the most is that, out of all these 54 years, for me to finally be accused of being with a man, it would be someone who looked like Mark Braddock,” Todd said on a recent episode of his podcast “Chrisley Confessions.” He added that Braddock resembled a “toad.”

The Chrisleys are just the latest reality show stars to face federal charges. In 2014, “Real Housewives of New Jersey” stars Teresa and Joe Giudice both pleaded guilty to several counts including bankruptcy fraud, conspiracy to commit both mail fraud wire fraud as well as failing to pay taxes.

Earlier this month, “Real Housewives of Salt Lake City” star Jen Shah was sentenced to six-and-a-half-years in prison for heading a years-long telemarketing scam that targeted elderly Americans

But, the Chrisleys are maintaining their innocence.

“As a family, we are still united and standing firm in our positions and in our faith. We don’t waiver in our faith,” the patriarch said on the podcast. “Now listen. Are we disappointed? Are we hurt? Yes, but we know that God has a purpose for everything.”



Check out our Latest News and Follow us at Facebook

Original Source

‘Real Housewives’ star Jen Shah to face sentencing for telemarketing fraud scheme

Disgraced “Real Housewives of Salt Lake City” star Jen Shah will be sentenced by a federal judge in Manhattan Friday for running a yearslong telemarketing scam that targeted elderly Americans. 

Federal prosecutors want Judge Sidney Stein to hand the fallen reality TV star up to 10 years in prison over the scheme, arguing she helped siphon the life savings of her victims for nearly a decade. 

“At the defendant’s direction, victims were defrauded over and over again until they had nothing left,” prosecutors wrote in their sentencing submission. 

“[Shah] and her co-conspirators persisted in their conduct until the victims’ bank accounts were empty, their credit cards were at their limits, and there was nothing more to take,” they wrote.

Shah, 49, pleaded guilty in July to one count of conspiracy to commit wire fraud for providing “leads” about who to target to a crew of telemarketers that duped victims into investing in dubious online projects. 

The scammers offered their marks bogus business services beginning in 2012 — then pocketed the cash and provided the victims “products” and “services” that were of little or no value. 

At her plea hearing, Shah told Judge Stein she knew the services being offered were basically worthless. 

Shah pleaded guilty in July to one count of conspiracy to commit wire fraud.
Heidi Gutman/Bravo/NBCU Photo Bank via Getty Images

“From 2012 to March 2021 in the Southern District of New York and elsewhere, I agreed with others to commit wire fraud,” Shah said. 

“I did this by knowingly providing customer names to people who were marketing business services that had little or no value,” she added. 

Shah’s defense attorneys argued in their own sentencing submission that she should serve three years in prison, arguing that while she played a significant role in the fraud, she was not a leader of the operation. 

Federal prosecutors have asked Judge Sidney Stein to sentence Shah to 10 years in prison.
Gabe Ginsberg/Bravo/NBCU Photo Bank via Getty Images

“Ms. Shah’s piece of the puzzle, though important, was not enough to carry out this fraud without these other crucial pieces controlled and directed by experienced criminals (who were not Ms. Shah),” her attorneys wrote. 

“There is neither reason nor evidence to place Ms. Shah at the ‘Godfather’ or ‘Kingpin’ level of this fraud,” they added. 

Check out our Latest News and Follow us at Facebook

Original Source

Sam Bankman-Fried is fighting to keep $450m stake in Robinhood

Sam Bankman-Fried is battling to keep a $450 million stake in retail stock Robinhood that FTX’s new boss is trying to claw back from the indicted crypto huckster, according to court records.

The ousted FTX founder claims he is entitled to the assets listed under Emergent Fidelity Technologies, a holding company Bankman-Fried registered in Antigua.

The filings released Thursday in a Delaware bankruptcy court show Bankman-Fried is the sole director and majority stakeholder of Emergent.

However, new FTX CEO John J. Ray III — who is seeking to regain billions in investor funds that Bankman-Fried allegedly swindled from them to prop up his hedge fund Alameda Research — argued the stake in Robinhood belongs to FTX.

The matter is complicated further by the fact that two other investors — the crypto lending firm BlockFi and FTX creditor Yonatan Ben Shimon — are also claiming ownership of the Robinhood stake.

John J. Ray III was installed as CEO of FTX after the company was placed in Chapter 11 bankruptcy.
AP

In May, Emergent and Bankman-Fried revealed that it owned a 7.6% stake in Robinhood. According to SEC filings, Bankman-Fried paid $648 million for more than 56.3 million shares in the app.

On Friday, shares of Robinhood were trading at $8, putting the stake’s worth at $447 million — a $200 million loss.

FTX, which has been placed under the stewardship of Ray while being administered under Chapter 11 bankruptcy protection, seeks to freeze any activity in the shares while the legal process plays out.

Bankman-Fried’s Antigua-based holding company bought a 7.6% stake in Robinhood earlier this year.
Robin App

“The debtors are conducting an investigation into the business affairs of the FTX group,” FTX said in the filing.

“This investigation to date indicates that the Robinhood shares are property of the debtors’ estates, held only nominally by Emergent.”

Last month, BlockFi filed suit against Bankman-Fried, claiming that Alameda Research promised to secure $1 billion in loans that included the Robinhood stake.

BlockFi alleged that Caroline Ellison, Bankman-Fried’s on-again, off-again girlfriend who ran Alameda Research, made the pledge.

But FTX, which is contesting BlockFi’s claim, said Ellison had no standing to make such a promise.

Yonatan Ben Shimon, a fintech executive and FTX creditor, claims he is the rightful owner of the Robinhood stake.
virtualhumans.org

“The Robinhood Shares were included in these pledged assets by Alameda’s then-CEO, despite the fact that the Robinhood Shares were nominally held by Emergent, because Alameda had then, and continues to have, a property interest in the Robinhood Shares,” FTX said in its court filing.

Robinhood CEO Vlad Tenev told CNBC earlier this month that he expects the stake in his company to be tied up in bankruptcy proceedings for the foreseeable future.

Robinhood CEO Vlad Tenev said that ownership of the stake in his company will be determined in bankruptcy proceedings.
AP

“I’m not surprised that it’s one of the more valuable assets they have on their balance sheet, because it is public company’s stock,” Tenev told CNBC.

 “We’re just watching this unfold. And it’s going to be locked up in bankruptcy proceedings — most likely for some time — and so we’re just kind of seeing how that plays out.”

Bankman-Fried was freed on $250 million bond on Thursday. He awaits trial on federal charges including wire fraud and securities fraud.

Ellison and FTX co-founder Gary Wang have pledged guilty to federal charges of fraud. They have indicated they will cooperate with investigators. The have both been released on $250,000 bail.

Check out our Latest News and Follow us at Facebook

Original Source

Hodlnaut Crypto Lender Under Scanner in Singapore, Being Probed for Fraud

Singapore has launched a probe into the Hodlnaut crypto lender to investigate its operations. The Commercial Affairs Department (CAD) from Singapore is now probing if Hodlnaut has been indulging in cheating and fraudulent activities. As per the law enforcement authorities, between August and November, several reports had claimed that Hodlnaut and its directors had made ‘false representations’ about the lender’s exposure to a particular digital token. The CAD is Singapore’s white-collar crime investigation unit.

The token in question remains unnamed. It reportedly refers to the USTC crypto token that was developed by Terra which collapsed quite dramatically earlier this year in May.

Following Terra’s collapse, Holdnaut had lost nearly $190 million (roughly Rs. 1,550 crore) that left its accounts high and dry.

In August, Hodlnaut had to freeze withdrawals from its platform to save its business from shutting down.

Holdnaut, as of now, has not reacted to the development.

The collapse of the Terra ecosystem — both algorithmic stablecoin UST and sister token LUNA — triggered a massive crypto sell-off leading to a crypto winter.

Terra’s collapse also prompted the high-profile meltdowns of crypto lenders Celsius and Voyager, as well as hedge fund Three Arrows Capital, and ushered even more scrutiny on crypto investing and stablecoins from regulators.

Shaktikanta Das, the governor of the Reserve Bank of India (RBI), had issued warnings against the experimenting in the crypto sector soon after Terra’s collapse.

“This [crypto] is something whose underlying [value] is nothing. There are big questions on how do you regulate it. Our position remains very clear, it will seriously undermine the monetary, financial, and macroeconomic stability of India,” the governor had said at the time.

In the market movements that followed the collapse of Terra and then FTX crypto exchange this month, over $200 billion (roughly Rs. 16,30,000 crore) were wiped off from the market, leaving the global crypto valuation currently at $828 billion (roughly Rs. 67,48,800 crore).

Several crypto companies including Lemon Cash, Genesis and Vauld had to lay off their employees to sustain their respective businesses.


Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

Florida’s ‘Mother Teresa’ accused of Ponzi scheme

A South Florida woman known as “Mother Theresa” in her community has been accused of running her business as a lucrative Ponzi scheme that scammed close to $200 million.

Johanna M. Garcia, of North Lauderdale, allegedly defrauded over 15,400 investors of up to $196 million through her company, MJ Capital Funding LLC, NPR reported Tuesday.

Founded in 2020, MJ Capital pledged to connect investors with small businesses through “merchant cash advance,” or MCA. 

Described as a “hardworking woman that has her priorities in line” in her company bio, Garcia boasted of being a down-to-earth businesswoman who helped regular people generate wealth– she was even “referred to as ‘Mother Theresa’ [sic] in her community.”

The ruse started to fall apart in April 2021, when a website emerged accusing MJ Capital of running a Ponzi scheme.

Garcia sued the anonymous whistleblower for defamation and continued to collect money from investors through Aug. 2021, when the Securities & Exchange Commission filed a formal complaint against the company.

In the document dated Aug. 9, the SEC alleges that MJ Capital used investors’ cash to fund “outside annualized ‘returns’ of 120%-180%,” while company higher-ups squirreled away investments for personal excursions and luxury goods.

In addition to using new injections of money to satisfy existing investors, the SEC claims that MJ Capital used unlicensed brokers and sales agents to sell unregistered securities.

A federal judge responded to the filing by freezing Garcia’s corporate assets and ordering them into receivership.  

While Garcia awaits further investigation, the case against MJ Capital got new fodder last Tuesday, when the SEC filed a second complaint against Pavel Ruiz, a company board member. 

The SEC argues that Ruiz, 29, played a “significant role in perpetuating the Ponzi scheme.”

Armed with a team of around 70 sales agents, Ruiz allegedly defrauded over 5,100 investors of at least $46 million, $7.7 million of which he diverted into his personal accounts.

According to the SEC, Ruiz used some of the pocketed money to purchase a luxury car and crypto assets.  

The same day as the SEC complaint was released, the U.S. Attorney’s Office in the Southern District of Florida charged Ruiz with conspiring to commit wire fraud.

It is unclear if Garcia, who was not named in the federal case, will face similar charges as well.

If convicted, Ruiz faces up to 20 years in prison. 

As of last week, both Garcia and Ruiz had reached partial settlements with the SEC, delaying monetary penalties until the conclusion of any criminal proceedings.

Ruiz is currently free on $250,000 bond.

The MJ Capital scandal is merely the latest in a disturbing string of similar cases, some of which saw investors scammed out of hundreds of millions of dollars.

In March this year, the Post reported on the crackdown on a $300 million Ponzi scheme that ended with FBI gunfire in Las Vegas. Just last month, the SEC filed a complaint against 11 people for their roles in an elaborate crypto pyramid scheme that targeted retail investors.

Check out our Latest News and Follow us at Facebook

Original Source

Exit mobile version