May 22, 2019, | AtoZ Markets - The United States Securities and Exchange Commission (SEC) has recently obtained an Order from the U.S. District Court in an action targeting an ongoing $30 million Ponzi scheme which allegedly involved Argyle Coin, LLC, a crypto company in South Florida, and its leader, José Angel Aman. Atoz Markets has made a deeper investigation of Argyle Coin Ponzi scheme.
Argyle Coin Ponzi scheme involved ICO
According to the documents filed with Florida Department of State, Argyle Coin, LLC filed as a Florida Limited Liability on Monday, October 9, 2017, and is approximately two years old.
The company was founded by self-proclaimed diamond industry veteran Jose Aman with the goal of building a blockchain-based platform powered by diamond-backed cryptocurrency for financing, trading and paying for precious diamonds.
The funds which U.S. District Court ordered to freeze allegedly were aiming to finance the aforementioned Jose Aman project. According to the latest reports Argyle Coin was raising funds through an Initial Coin Offering (ICO’) promoting it as the world’s first cryptocurrency backed by diamonds that worth over $25,000,000. The company was also claiming to create a new class of ICOs that will guarantee the performance of its blockchain platform.
Argyle Coin Ponzi scheme involved over 300 investors from Canada and the USA
The US SEC alleges that the funds, which Argyle coin raised through aforementioned ICO project were used to cover their prior investors’ “purported returns” in other associated businesses. The scenario is very similar to the regular Ponzi scheme
The investors were supposedly assured by Argyle Coin team that their investment was risk-free as was protected with millions in diamonds in a safe deposit box. The US Commission claims that Argyle Coin Ponzi scheme has already lured more than 300 investors across the United States and Canada. The SEC alleges, that current Argyle coin Ponzi scheme is a continuation of an activity Aman orchestrated with two other companies he owns, Natural Diamonds Investment Co. (Natural Diamonds) and Eagle Financial Diamond Group Inc (Eagle).
Argyle Coin founder’s criminal past
According to the SEC complaint, back in 2014 Jose Aman engaged in unregistered offerings of securities in Natural Diamonds Investment Co. and Eagle Financial Diamond Group Inc.
The agency claims that Argyle Coin founder and his team illegally raked in roughly $25 million from at least 100 investors, falsely promising that the companies would invest in whole diamonds to cut down and sell for huge profits.
Aman was assisted by Harold Seigel and Jonathan H. Seigel, who also have interests in Natural Diamonds and Eagle. In October 2017, Aman and Seigel continued the scheme by luring investors to invest in Argyle Coin.
According to the US SEC charges Argyle Coin and other companies including Natural Diamonds and Eagle misused or misappropriated more than $10 million of investor funds and violated the antifraud provisions of the federal securities laws.
The current SEC’s complaint seeks disgorgement of allegedly ill-gotten gains and prejudgment interest from Natural Diamonds, Eagle, Argyle Coin, Aman, Harold Seigel, and the relief defendants, and financial penalties against Natural Diamonds, Eagle, Argyle Coin, Aman, Harold Seigel, and Jonathan H. Seigel.
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