$5.5 billion wiped in one day: How a Mexican billionaire lost billions in online scam fooled by an 'illustrious family name'
Ricardo Salinas Pliego
, a Mexican billionaire and owner of Grupo Salinas, to Wall Street Journal. The owner of the telecommunications conglomerate
Grupo Salinas
lost nearly a quarter of his $16 billion fortune in a sophisticated "loan-to-own" scam orchestrated by con artists posing as descendants of John Jacob Astor, the German-born fur trader who was America's richest man when he died in 1848, according to The Wall Street Journal. Astor's family, known for dominating Gilded-Age society and inspiring the Waldorf Astoria hotels, was falsely linked to the fraudulent
Astor Capital Fund
.
How the scam started
In 2021, Salinas Pliego sought to finance a Bitcoin investment by borrowing $400 million against his shares in Grupo Elektra, a retail and banking empire founded by his father in 1950. He connected with Astor Capital Fund through a Swiss financial adviser, believing it was a prestigious firm tied to the Astor legacy. The company, led by a man claiming to be 'Thomas Astor Mellon,' offered a 1.15% interest loan and presented polished materials, including a website with a lion seal and a promotional video showcasing branded offices.
'Thomas Astor Mellon' was actually Alexey Skachkov, a Ukrainian with a criminal record
However, the operation was a facade. 'Thomas Astor Mellon' was
Alexey Skachkov
, a Georgian resident with a criminal record for prescription forgery and jewelry theft, while the mastermind, Ukrainian-born American
Vladimir Sklarov
, posed as 'Gregory Mitchell.' Sklarov, who also used aliases like 'Mark Simon Bentley,' had a history of fraud, including a 1990s $18 million Medicare scam. The Journal reports that Sklarov's group sold off Salinas Pliego's $400 million in Grupo
Elektra shares
, triggering a 71% stock plunge in July 2024, erasing $5.5 billion from his wealth and $4 billion from Elektra's market value. 'I feel like an absolute idiot. How could I fall for this?' Salinas Pliego, 69, told the Journal.
The scheme funneled funds into luxury real estate, including a $6.45 million New York penthouse, a $2.67 million Virginia mansion, a $6 million French château, and Greek villas, according to property records cited by Currency. Warning signs emerged in 2021 when Salinas Pliego's team noticed unusual trading in Elektra shares, but assurances from Astor Capital, including visits to seemingly legitimate New York offices, delayed action. When Salinas Pliego attempted to prepay the loan in July 2024, Astor Capital issued a default notice, citing violations like a verification request and a Mexican government probe into his companies.
Salinas Pliego is not the only victim
The Journal notes that Salinas Pliego was one of many victims in a broader operation, with Sklarov allegedly controlling $750 million in stock from borrowers across the U.S., U.K., and Asia, using names like Cornelius Vanderbilt Capital Management. The fraud exploited securities-based lending, a $4.3 trillion market, per Deloitte, where lax regulation allows predatory schemes. Salinas Pliego's legal team has frozen $400 million in a London court and is tracing funds, some of which moved through Sklarov's New York attorney to offshore accounts. Sklarov, now living in Greece with a yacht named 'Enchantment,' denies wrongdoing, claiming borrowers knew their stock could be lent to third parties, per the Journal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
a few seconds ago
- India Today
Trump administration sanctions Mexican rapper over allegations of cartel ties
The Trump administration announced on Wednesday that it was sanctioning Mexican musician Ricardo Hernndez, known as 'El Makabelico,' over allegations that the artist was laundering money for a drug move comes after the administration stripped the visas of some of Mexico's most famous musicians, targeting those whose genres often explore themes related to US Treasury Department has taken action against the musician who is also identified as a "narco-rapper," for his alleged ties to the Cartel del Noreste (CDN), which evolved from the Zetas Cartel. The musician, named Hernndez, is accused of laundering money for the criminal organisation through his concerts and events. The CDN is among several Latin American crime groups designated as foreign terrorist organisations by the Trump According to the Treasury Department's allegations, Hernndez has been sanctioned because he is believed to be acting for or on behalf of the CDN. The department claims that half of his streaming royalties are funnelled directly to the cartel. The sanctions also extend to leaders of the has however, not been an official response from the rapper about the sanctions imposed on FROM THE TREASURY DEPARTMENT'CDN depends on these alternative revenue streams and money laundering methods to boost their criminal enterprise, diversifying their income beyond criminal activity like drug trafficking, human smuggling, and extortion," wrote the Treasury Department in a news release."The Treasury Department will continue to be relentless in its effort to put America First by targeting terrorist drug cartels. These cartels poison Americans with fentanyl and conduct human smuggling operations along our southwest border," said U.S. Treasury Secretary Scott US Treasury Department also took it to their social media handle on X to announce the sanctions on the rapper along with three high-ranking members of the Treasury's Office of Foreign Assets Control sanctioned three high-ranking members of the Mexico-based terrorist organization Cartel del Noreste (CDN), along with narco-rapper El narco-rapper's concerts and events are used to launder money on behalf of CDN,— Treasury Department (@USTreasury) August 6, 2025THE SANCTIONThe sanctions imposed will result in blocking the rapper's properties in US and freeze financial transactions with any businesses owned by those sanctioned, and threaten secondary sanctions against foreign financial institutions that do business with recent years, emerging artists like Peso Pluma have propelled Mexican music genres onto the global stage by blending traditional sounds with trap and other contemporary influences, rivalling international stars such as Taylor Swift and Bad Bunny on streaming genres — particularly 'narco-corridos' — have sparked much controversy, as many performers reference drug cartels and the broader 'narco culture.' While some tracks glorify criminal figures, others reflect the difficult realities faced by youth in cartel-dominated regions, drawing parallels to themes often explored in American style of music has been at the heart of ongoing debates over the boundaries between free artistic expression and censorship, with several Mexican states previously prohibiting live performances of certain ADMINISTRATION'S PREVIOUS STEPSadvertisementIn recent months, the Trump administration has taken action by revoking visas for several artists associated with the genre. In May, the well-known northern Mexican group Grupo Firme, which has worked to move away from cartel-related content, announced the cancellation of a planned California concert due to visa April, the administration said it was revoking the visas of the band Alegres de Barranco after they flashed the face of a cartel boss behind them at a concert, prompting a controversy and even criminal investigations in Mexico.- EndsWith inputs from agencies
Economic Times
30 minutes ago
- Economic Times
Trump envoy Witkoff meets Putin ahead of Russia-Ukraine peace deadline
Russian President Vladimir Putin met with U.S. envoy Steve Witkoff in Moscow ahead of a deadline set by President Trump for a Ukraine peace deal, or Russia will face fresh U.S. sanctions. The three-hour meeting was described as 'constructive.' Despite diplomatic overtures, Trump warned of tariffs on nations importing Russian oil. Ukraine insists Russia must end the war. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Russian President Vladimir Putin held talks with US President Donald Trump 's special envoy Steve Witkoff in Moscow on Wednesday, days before the White House's deadline for Russia to reach a peace deal with Ukraine or potentially face severe economic penalties that could also hit countries buying its meeting between Putin and Witkoff lasted about three hours, the Kremlin foreign affairs adviser Yuri Ushakov said that Putin and Witkoff had a "useful and constructive conversation" that focused on the Ukrainian crisis and, in a nod toward improving relations between Washington and Moscow, "prospects for possible development of strategic cooperation between the US and Russia."Trump said in a post on his Truth Social media network that Witkoff "had a highly productive meeting" with Putin in which "great progress was made."Trump said he updated America's allies in Europe about the meeting and that they will work toward an end to the Russia-Ukraine war "in the days and weeks to come."Earlier on Wednesday, a White House official said the US was still expected to impose secondary sanctions against Russia on Friday after a 10-day deadline Trump imposed is set to expire. The White House has not yet released details about the sanctions. The official was not authorised to speak publicly and spoke on condition of has threatened "severe tariffs" and other economic penalties if the killing doesn't has expressed increasing frustration with Putin over Russia's escalating strikes on civilian areas of Ukraine, intended to erode morale and public appetite for the war. The intensified attacks have occurred even as Trump has urged the Russian leader in recent months to President Volodymyr Zelenskyy said Wednesday evening that he and Trump spoke on the phone after Witkoff met with Putin in Moscow. He said "European leaders also participated in the conversation," and "we discussed what was said in Moscow.""Our common position with our partners is absolutely clear: The war must end," Zelenskyy said. "We all need lasting and reliable peace. Russia must end the war that it started." He didn't offer any details of the from Tuesday to Wednesday, Russian forces hit a recreational center in Ukraine's southern Zaporizhzhia region, killing two people and injuring 12, including two children, regional Gov. Ivan Fedorov said forces launched at least four strikes on the area and initially attacked with powerful glide bombs."There is zero military sense in this strike. Only cruelty to intimidate," Zelenskyy said in a post on also struck the Ukrainian power grid and facilities for heating and cooking gas, Zelenskyy said, as Ukraine makes preparations for analysts and Ukrainian officials say Putin is stalling for time and avoiding serious negotiations while Russian forces push to capture more Ukraine land.A Russian offensive that started in the spring and is expected to continue through the fall is advancing faster than last year's push but is making only slow and costly gains and has been unable to take any major situation on the front line is critical for Ukrainian forces but defences are not about to collapse, analysts Tuesday, Trump said "we'll see what happens" regarding his threat to slap tariffs on nations that buy Russian oil, which could increase import taxes dramatically on China and India."We have a meeting with Russia tomorrow," Trump said. "We're going to see what happens. We'll make that determination at that time."The president said that he has not publicly committed to a specific tariff up diplomatic and economic pressure on the Kremlin risks stoking international tensions amid worsening Russia-US has given no hint that he might be ready to make concessions. Instead, the Russian leader and senior Kremlin officials have talked up the country's military announced last week that Russia's new hypersonic missile, which he says cannot be intercepted by current NATO air defence systems, has entered announced Tuesday that it no longer regards itself as bound by a self-imposed moratorium on the deployment of nuclear-capable intermediate range missiles, a warning that potentially sets the stage for a new arms Russian President Dmitry Medvedev, meantime, warned that the Ukraine war could bring Russia and the US into armed conflict. Trump responded to that by ordering the repositioning of two US nuclear spokesman Dmitry Peskov on Monday welcomed Witkoff's visit. "We consider (talks with Witkoff) important, substantive and very useful," he initially gave Moscow a 50-day deadline, but later moved up his ultimatum as the Kremlin continued to bomb Ukrainian Trump himself doubted their effectiveness, saying Sunday that Russia has proven to be "pretty good at avoiding sanctions.""They're wily characters," he said of the Kremlin has insisted that international sanctions imposed since its February 2022 invasion of its neighbour have had a limited maintains the sanctions are taking their toll on Moscow's war machine and wants Western allies to ramp them up.
Mint
an hour ago
- Mint
Swiss Firms Rethink Global Strategy After Tariff Surge
Simon Michel couldn't take the risk of waiting any longer. As Switzerland was assessing the shock announcement that the US would impose a 39% tariff, the chief executive officer of Ypsomed Holding AG realized that he needed to act. Ypsomed plans to move some production of medical devices to the German city of Schwerin, where the tariff is less than half the Swiss level. The executive also wants to ramp up production in the US, he told Bloomberg News. The Burgdorf-based company isn't alone. Across the country, executives and owners at businesses — from large multinationals such as food giant Nestle SA to small domestic champions — are trying to figure out how to deal with the new reality. The scale of the levy exceeded all expectations and caught the Swiss business elite off guard. In a call with executives on Monday, one of Switzerland's chief negotiators said that they were still working on getting the overall tariff rate down. Their response to her was blunt: there's no substitute for the US market. Plans to move, such as Michel's, could still change if Switzerland gets Donald Trump to lower the tariff. But with so much at stake, some businesses are taking matters into their own hands. Machine-tool maker Netstal Maschinen AG is looking to reduce the share of Swiss components in its supply chain for products aimed at the US market, which accounts for approximately 15% of revenue. Orders from the US have already fallen 20% in the first half of 2025, CEO Renzo Davatz said. And it's likely to get worse if the Swiss don't get a better deal. A one-hour drive away in Weggis, Adrian Steiner, the CEO of Thermoplan AG, which builds coffee machines for Starbucks among other things, is sketching out plans to expand production capacities in the EU and the US, he said. However, he wants to wait for a final decision until the US tariffs kick in. One high-profile consumer product caught up in the Swiss tariffs is Nespresso. Though Nestle SA sells the coffee capsules all over the world, it only produces them in Switzerland. Most of its other product lines are made locally for their respective markets. The same holds true for many of Switzerland's international listed companies, including consumer brands such as Lindt & Spruengli AG and Logitech International AG, as well as industrial players like ABB Ltd and Holcim AG. After Trump's so-called Liberation Day announcements on tariffs, some firms without fully diversified production front-loaded shippings to the US. Shipping company Kuehne and Nagel International AG saw a slight increase in industry-wide shipments from Switzerland to US in the period. Switzerland is only a small part of their business. But for companies that waited, believing the government's optimistic messaging about a US deal, there was a shock last week. Now, there's no time. 'There is some movement to expedite loadings, but generally the timeline is too tight to load unplanned shipments into containers and to then gate in and get on a ship,' a spokesperson for Kuehne and Nagel said. 'Many hinterland manufacturers simply did not have time.' The risks to the Swiss economy are sizable. A 39% tariff rate might knock off 1% of Switzerland's gross domestic product over the medium term. While large multinational companies have some chance of reorienting supply chains and production to cope, it's much harder for smaller family-owned businesses. There's also the personal cost. Lobby group Swissmem says the tariffs put tens of thousands of Swiss jobs at risk. Among Switzerland's top companies, Roche Holding AG and Novartis AG are in the clear for now as pharmaceuticals are exempt. But that might soon change, with Trump warning he could announce tariffs on the sector in the next week. Some companies have tried to get ahead of the tariffs by frontloading early in the year. 'We transferred a lot of stock already in the first six months of this year when the story about the tariffs started,' watchmaker Swatch said in a statement. 'In such a situation, inventory is key and a competitive advantage.' With assistance from Naomi Kresge, Jennifer Creery, Noele Illien and Sonja Wind.
