Latest news with #Ponzi-style
Scottish Sun
12-07-2025
- Scottish Sun
Brit charged with £73m wine scam after he allegedly sold vino that didn't exist for £12k as he appears in New York court
He has been detained on charges of wire fraud and money laundering SAV PLONK Brit charged with £73m wine scam after he allegedly sold vino that didn't exist for £12k as he appears in New York court Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A BRIT is facing charges in a New York court over his alleged connection to a major $99 million wine fraud. James Wellesley, 58, pleaded not guilty on Friday after he was extradited from the UK. Sign up for Scottish Sun newsletter Sign up 7 James Wellesley, who allegedly sold vino that didn't exist for £12k Credit: Kent Police 7 The defendants are alleged to have solicited $99 million in investments from residents (picture is not of wine in question) Credit: Bonhams 7 The US Attorney's Office alleges that neither the wine collections not the wine itself actually exist Credit: Linkedin 7 Stephen Burton had been extradited from Morocco in 2023 Credit: Kent Police He has been detained on charges of wire fraud and money laundering. Wellesley was arraigned today before United States Magistrate Judge Robert M. Levy The alleged Ponzi-style scheme involved getting investors to lend money to the wine collectors in return for regular interest payments. But the US Attorney's Office alleges that neither the wine collections not the wine itself actually exist. This included Domaine de la Romanée-Conti - which is listed online for more than $17,000 per bottle. These loans were said to be secured against a stockpile of expensive wines. The defendants are alleged to have solicited $99 million in investments from residents of New York and other areas between 2017 and 2019. Wellesley's co-defendant Stephen Burton had been extradited from Morocco in 2023. He had been trying to enter the north African country on a false Zimbabwean passport. 60-year-old Brit Burton has also pleaded not guilty to similar charges. Wellesley is reported to have had many aliases including Andrew Fuller and Andrew Templar. Shocking moment woman has full blown foot-stamping airport MELTDOWN at check-in Christopher Raia, assistant director in charge of the FBI New York office, said: "James Wellesley and his business partner allegedly concocted an elaborate scheme defrauding investors out of millions of dollars to finance their own personal expenses. "Their alleged deceit spread across years and continents." If convicted, the two each face up to 20 years in prison. 7 The alleged Ponzi-style scheme involved getting investors to lend money to the wine collectors in return for regular interest payments 7 The defendants are alleged to have solicited $99 million in investments from residents of New York Credit: Kent Police 7 The Brits are facing charges in a New York court Credit: Alamy Prosecutors allege the pair used loan proceeds "to make fraudulent interest payments to investors and for their own personal expenses". Ricky Patel, a Homeland Security special agent, said: "James Wellesley and his co-conspirator are accused of masterminding their nearly $100 million international fraud scheme that exploited the unsuspecting public, including New Yorkers, for their own selfish enrichment. "As alleged, the defendants claimed Bordeaux Cellars boasted a high-value wine stockpile and a clientele of 'high-net-worth wine collectors' – and in turn profited handsomely – all while they swindled investors out of hundreds of thousands of dollars, if not more. "Let it be known, regardless of the nature of the transnational criminal scheme, HSI New York, alongside our law enforcement partners, will continue to adapt and evolve to fight global and domestic financial crimes wherever and whenever possible." "Today's arraignment sends a message to all perpetrators of global fraud schemes that my office will work tirelessly to ensure they answer for crimes committed in the United States," said US attorney Joseph Nocella. "We will not rest in our efforts to seek justice for victims of fraud."
The Irish Sun
12-07-2025
- The Irish Sun
Brit charged with £73m wine scam after he allegedly sold vino that didn't exist for £12k as he appears in New York court
A BRIT is facing charges in a New York court over his alleged connection to a major $99 million wine fraud. James Wellesley, 58, pleaded not guilty on Friday after he was extradited from the UK. Advertisement 7 James Wellesley, who allegedly sold vino that didn't exist for £12k Credit: Kent Police 7 The defendants are alleged to have solicited $99 million in investments from residents (picture is not of wine in question) Credit: Bonhams 7 The US Attorney's Office alleges that neither the wine collections not the wine itself actually exist Credit: Linkedin 7 Stephen Burton had been extradited from Morocco in 2023 Credit: Kent Police He has been detained on charges of wire fraud and money laundering. Wellesley was arraigned today before United States Magistrate Judge Robert M. Levy The alleged Ponzi-style scheme involved getting investors to lend money to the wine collectors in return for regular interest payments. But the US Attorney's Office alleges that neither the wine collections not the wine itself actually exist. Advertisement This included Domaine de la Romanée-Conti - which is listed online for more than $17,000 per bottle. These loans were said to be secured against a stockpile of expensive wines. The defendants are alleged to have solicited $99 million in investments from residents of New York and other areas between 2017 and 2019. Wellesley's co-defendant Stephen Burton had been extradited from Advertisement Most read in The Sun Breaking Breaking He had been trying to enter the north African country on a false Zimbabwean passport. 60-year-old Brit Burton has also pleaded not guilty to similar charges. Wellesley is reported to have had many aliases including Andrew Fuller and Andrew Templar. Shocking moment woman has full blown foot-stamping airport MELTDOWN at check-in Christopher Raia, assistant director in charge of the FBI New York office, said: "James Wellesley and his business partner allegedly concocted an elaborate scheme defrauding investors out of millions of dollars to finance their own personal expenses. Advertisement "Their alleged deceit spread across years and continents." If convicted, the two each face up to 20 years in prison. 7 The alleged Ponzi-style scheme involved getting investors to lend money to the wine collectors in return for regular interest payments 7 The defendants are alleged to have solicited $99 million in investments from residents of New York Credit: Kent Police Advertisement 7 The Brits are facing charges in a New York court Credit: Alamy Prosecutors allege the pair used loan proceeds "to make fraudulent interest payments to investors and for their own personal expenses". Ricky Patel, a Homeland Security special agent, said: "James Wellesley and his co-conspirator are accused of masterminding their nearly $100 million international fraud scheme that exploited the unsuspecting public, including New Yorkers, for their own selfish enrichment. "As alleged, the defendants claimed Advertisement "Let it be known, regardless of the nature of the transnational criminal scheme, HSI New York, alongside our law enforcement partners, will continue to adapt and evolve to fight global and domestic financial crimes wherever and whenever possible." Read more on the Irish Sun "Today's arraignment sends a message to all perpetrators of global fraud schemes that my office will work tirelessly to ensure they answer for crimes committed in the United States," said US attorney Joseph Nocella. "We will not rest in our efforts to seek justice for victims of fraud."
Business Insider
12-07-2025
- Business
- Business Insider
Nigeria reports rise in digital fraud cases as financial crimes surge by 45%
The Central Bank of Nigeria (CBN) has raised fresh concerns over the rising tide of financial crimes in the country, revealing a sharp 45% increase in fraud cases over the past year. The Central Bank of Nigeria reported a 45% increase in fraud cases within the past year, mainly involving digital platforms. Digital financial crimes have exploited regulatory gaps, encompassing schemes using cryptocurrencies and tokenized assets. Over $56 billion in cryptocurrency transactions were recorded in Nigeria, highlighting its leading role in Africa's digital economy. In a development that points to serious regulatory gaps in Nigeria's digital economy, 70% of the losses from these crimes were traced to digital platforms, many of which operate outside regulatory oversight. CBN Governor Olayemi Cardoso, represented by Deputy Governor Muhammad Sani Abdullahi, made the disclosure during a public lecture organized by the Economic and Financial Crimes Commission (EFCC) in Abuja on July 10. He cited data from the CBN's 2024 Financial Stability Report, noting that the digital finance boom while expanding financial inclusion has also introduced serious vulnerabilities into the system. According to the CBN, over $56 billion worth of cryptocurrency transactions took place in Nigeria between July 2022 and June 2023, placing the country at the forefront of digital finance on the continent. However, the rapid pace of innovation is also being exploited by criminal networks, many of which run unchecked on unregulated platforms. At least 30 fraudulent investment schemes mimicking legitimate digital assets have already been flagged by relevant agencies. CBN, SEC warn of rising scams threatening market trust While digital services have made payments and investing easier for Nigerians, they have also become a new frontier for fraud. The CBN pointed out that scammers are increasingly leveraging digital currencies and tokenized assets to lure the public into Ponzi-style operations. These schemes, often disguised as legitimate investments, not only threaten personal wealth but also put the financial system's integrity at risk. Echoing the CBN's concerns, the Director General of the Securities and Exchange Commission (SEC), Emomotiti Agama, warned that virtual asset scams are fast becoming a major obstacle to investor protection. He said that such scams do not merely result in financial loss, they chip away at public trust and create long-term damage to market stability. Officials link fraud to social values, warn of long-term harm Highlighting the broader consequences of fraud, Director General of the National Orientation Agency (NOA), Malam Lanre Issa-Onilu, warned that financial crimes are not just about economic figures, they leave lasting scars on the lives of everyday Nigerians. According to him, each stolen Naira could mean a child forced out of school, a business ruined, or a family's livelihood destroyed. Issa-Onilu revealed that the NOA is leading a national campaign to challenge the growing 'get-rich-quick' mindset, which he believes fuels susceptibility to scams. The campaign, which has been running for months, seeks to instill values of patience, hard work, and integrity particularly among young Nigerians.
12-07-2025
- Business
Officials probing Georgia GOP donor accused of $140 million Ponzi scheme
The Securities and Exchange Commission and Georgia officials are investigating a Georgia businessman and GOP supporter accused of perpetrating a Ponzi scheme defrauding hundreds of investors out of more than $140 million, and using some of the money for political donations. Authorities have accused Georgia-based Liberty Building & Loan and its owner Edwin Brand Frost IV of defrauding more than 300 investors. According to a complaint filed by the SEC, Frost "misappropriated a significant amount" of the company's investor assets, including $570,000 in investor funds used to make political donations. The complaint also said $335,000 in investor funds was paid to a rare coin dealer, $230,000 was used to rent a vacation home in Kennebunkport, Maine, $140,000 was used to purchase jewelry and $20,800 was used to purchase a Patek Philippe watch. "Given that First Liberty was operating at a loss, Frost was not entitled to these funds according to what he told investors as to how he would be compensated," the civil complaint, filed in Georgia on Thursday, said. According to the complaint, Frost and his companies in part told investors their funds would be used to make short-term small business loans, and that they would receive large returns. "Beginning no later than 2021, First Liberty began operating as a Ponzi scheme," the complaint alleged. The complaint alleged the company started soliciting funds first from "friends and family," but last year "started a more widespread public solicitation of potential advisors," advertising on radio and podcasts. According to the complaint, "Most, if not all, of the funds raised through the publicly advertised offering were either misappropriated or used to make Ponzi-style payments to existing investors." Frost, in a statement provided by his attorney, said he takes complete responsibility and is working to pay back investors. "I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down," Frost said in the statement. "I will be cooperating with the receiver and federal authorities and ask that everyone allow the receiver time to sort things out and do his best to repair the damage I created. I would like to apologize personally to those I have harmed." A message on the company's website said it had "ceased all business operations" and is "cooperating with federal authorities as part of an effort to accomplish an orderly wind-up of the business." Georgia Secretary of State Brad Raffensperger said in a statement that his office has an "active and ongoing investigation" and encouraged any potential victims to come forward "immediately." An FBI official told ABC News, "The FBI is aware of the allegations. However, the FBI does not comment upon the existence or the nonexistence of any investigation. Anyone who believes they have information about the matter can file a complaint at On Friday, a judge in Georgia entered an order freezing the defendants' assets, among other measures. The SEC said the defendants had consented to the move "without admitting or denying the allegations in the complaint."
Newsweek
10-07-2025
- Newsweek
Who Is Cesar Humberto Pina? 'Flipping NJ' Influencer Faces Fraud Charges
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A federal grand jury has indicted New Jersey real estate investor and social media personality Cesar Humberto Pina, also known as "Flipping NJ," for his alleged involvement in a wide-ranging financial crime scheme, U.S. Attorney Alina Habba announced Thursday. The 47-year-old Franklin Lakes, New Jersey, resident faces charges including two counts of wire fraud, one count of conspiracy to launder drug proceeds, two counts of money laundering, and one count of bribery tied to federally funded programs. The indictment accuses Pina of running a multimillion-dollar Ponzi-style investment fraud, laundering funds he believed to be drug proceeds as part of a sting operation and attempting to bribe a New Jersey official. His initial court appearance and arraignment have yet to be scheduled. "Cesar Pina is alleged to have misappropriated millions of dollars of peoples' hard-earned money, laundered money for narcotics traffickers, and bribed a politician in furtherance of real estate projects. This multi-year torrent of criminal activity hurt investors around the United States, facilitated the scourge of narcotics trafficking, and undermined confidence in our public officials. The U.S. Attorney's Office is committed to working with our law enforcement partners to root out these types of illicit activities that threaten our communities." Pina has cultivated a significant social media presence to promote his real estate ventures. His Instagram profile, also under the handle @flipping_nj, has a reach of approximately 287,000 followers. Beyond social media, Pina expanded his influence by co-hosting real estate seminars across the United States alongside DJ Envy, a well-known radio personality. This is a breaking news story. Updates to follow.
