Latest news with #PonziScheme
News.com.au
5 days ago
- Business
- News.com.au
Australian senator enrages Bitcoin community with brutal take on cryptocurrency
An Australian senator has managed to enrage the entire Bitcoin community after branding the wildly popular cryptocurrency as a 'Ponzi scheme'. Gerard Rennick made the comments last week after Bitcoin (BTC) reached an all-time high of $111,977, driven by a wave of optimism over cryptocurrency legislation in the United States. Experts hailed the surge as a 'major milestone'. However, Senator Rennick dismissed this recent development, saying Bitcoin will ultimately go to $1 million. He said this was because the cryptocurrency is a Ponzi scheme, which is a fraudulent investment scheme that relies on recruiting new investors to pay returns to earlier investors. The People First Party founder then suggested BlackRock, the world's biggest asset manager and one of the largest Bitcoin holders, would 'pump more and more dollars into a supply constrained product'. 'What exactly will this product produce? Absolutely nothing and nor will the thousands of people buying and selling it,' Senator Rennick wrote on X. 'Australia needs real engineers not financial engineers. We need infrastructure that delivers essential services particularly energy, water and transport. You can't eat Bitcoin.' His comments immediately drew ire from the wider cryptocurrency community, but the senator refused to back down. 'What a spectacularly stupid response. I look forward to plastering it everywhere when you try and make yourself relevant in the next election,' one person said. To which Senator Rennick noted the role 'of a politician isn't to engage in promoting a speculative asset'. When another person claimed he was 'embarrassing' himself and told him to study Bitcoin further, he questioned why he should, asking, 'What difference does it matter to you if I understand it or not. If you believe in it then, good for you but mind your own business when it comes to my life and how I choose to live it.' He added that he understood it enough to 'know it's not going to solve Australia's economic problems'. In response to his claims that you 'can't eat Bitcoin', one person pointed out that you 'also can't eat the internet' and asked the politician whether he was 'opposed to that too'. 'No but I'm not claiming the internet is the solution to all our problems. Bitcoiners seem to think Bitcoin is the solution to our monetary problems. It's not. Securing credit against hard assets that generate goods and services is the solution,' Senator Rennick said. 'Whether Bitcoin is worth $10 or $1 million is irrelevant if a nation can't feed itself.' When another social media user told him to read some books on Bitcoin, he responded by telling them to 'get a life'. 'The fact that you care about my views on Bitcoin shows your hypocrisy. I don't pretend to be an expert - I was trolled by a Bitcoin grifter. I prefer to deal in real objects - it's my right to choose that,' he said. 'On the other hand you Bitcoiners claim to want to be free from political interference yet crave my opinion on it. What does it matter. It will go to a million dollars and you will be happy. On the other hand I will be happy enjoying the real world of Mother Nature and being trained in skills that matter.' This is just a small section of the lengthy online bickering that ensued in the wake of Senator Rennick's initial comment. In fact, the reaction was so large that the Australian Bitcoin Industry Body (ABIB) released a lengthy statement admonishing the senator for engaging in such a debate. The body claimed that, as a public representative, he has a duty to engage with the concerns of Australians in an intellectually honest way, rather than 'dismiss them from a place of confusion or authority'. It accused Senator Rennick of having a 'deep misunderstanding' of Bitcoin, warning this could ultimately lead to bad policy. 'This isn't about whether Australians can use Bitcoin — we already do. This is about whether our government is capable of understanding how Bitcoin can enrich the nation, drive innovation, and build long-term resilience for Australians,' ABIB said.
Daily Mail
5 days ago
- Business
- Daily Mail
Sophisticated conman dupes 14 close family friends to shell out £600,000 on fraudulent sports betting scheme and then lavishes the money on himself
A 'sophisticated' conman duped family friends into shelling out £600,000 on a sports betting 'Ponzi scheme' - before lavishing their money on himself. Richard Evans, 41, was jailed for a seven-year scam which saw him convince 14 people they would make huge returns on an elaborate 'spread betting' operation. The victims left out of pocket when the venture went 'catastrophically wrong' included a teacher who lost an inheritance she had been left by her father at the age of 11. Most of the investors were 'lifelong friends' of Evans's parents and struggled to believe someone they had known for years could defraud them, Portsmouth Crown Court heard. Evans, a father-of-two, has now been jailed for four-and-a-half years after pleading guilty to nine counts of fraud and two counts of money laundering. Passing sentencing, Recorder Jaron Crooknorth said Evans should be 'ashamed' of his actions and the impact on the families he defrauded. He said: 'Although money was used to place bets it could not be called investing, there were no true profits, you made annual statements to induce more money. 'I do not accept there was little or no planning, this was sophisticated. 'This took place over a significant period, your actions were dishonest even if it did not start that way.' Evans told his victims they could make money through a 'sophisticated' scheme focused on spread betting, where gamblers bet on if the outcome of a match will be higher or a lower than a potential range of likely scores. The court heard that the investors signed a contract which promised a 15 per cent return on their investment guaranteed by Evans' wealthy business partner. They were told their money would be invested through a company called Sports Trust, which did not exist. But the plan - which began in 2014 - was 'inevitably' going to fail and he was left without the money to repay investors, prosecutors said. He 'frittered away' the money, which went straight into his bank account, on bars and restaurants as well as using it to pay his mortgage. In one family he targeted, both parents and their two adult children invested in the scheme and lost £225,050 between them. One victim, Alison Wem, said she felt she had 'failed as a mother' by recommending the investment option to the rest of her family. In total, 14 people invested £612,807 which has yet to be repaid, the court heard. Evans was said to have made £106,000 in bets with an index company, a gambling firm specialising in spread betting, but was paid out just £52,987 - a loss of almost £53,000. He did make a meagre profit of £300 through Paddy Power, far lower than the amount invested. Evans managed to keep the scheme afloat by making false annual statements to encourage people to keep their money invested and, when that failed, stalling or making excuses about repayments. Eventually, his victims grew suspicious and reported Evans to the police in late 2021. The court was told that the fraud has 'fractured' families, with some standing by Evans. One victim of the scheme even provided a character reference for the father of two. Prosecutor Tim Moores said: 'The fallout that has occurred, even between friends and family, between those who realised they were duped and those who still now refuse to believe Evans defrauded them was relevant to the fact that most people knew him, most of the investors were close family friends of his parents and their adult children.' He added: 'It is not a case where there are expenditures on large capital items, it is just a regular pattern of the defendant using the sums as his own, a lot of it has been frittered away on restaurants and bars.' James Williams, defending, claimed in mitigation that Evans' scheme had been a 'genuine' attempt to enrich himself and his investors. He said: 'They went into this with their eyes wide was an attempt by Evans to make money, largely for himself and for the investors, that went catastrophically wrong.'
CBS News
23-05-2025
- Business
- CBS News
California real estate mogul accused of running $28M Ponzi scheme that had hundreds of victims
A California real estate mogul has been arrested and is facing multiple federal charges for allegedly running a 15-year Ponzi scheme that defrauded hundreds of investors out of nearly $30 million. According to the U.S. Attorney's Office for the Northern District of California, 63-year-old Kenneth W. Mason of Sonoma was arrested Thursday. A federal grand jury charged Mattson with seven counts of wire fraud, one count of money laundering and one count of obstruction of justice. Mattson was the president of LeFever Mattson based in Citrus Heights, in Sacramento County. The company controlled several limited partnerships that owned and managed commercial and residential properties. Mattson obtained millions of dollars in investments from hundreds of people many of whom were nearing retirement or were retired. According to prosecutors, Mattson claimed the money was going into "legitimate and safe" partnerships that owned real estate, but in reality, were "off-books investors" that never became owners in the partnerships. "Instead of delivering the investment returns he promised, Mr. Mattson is charged with cheating these investors out of their hard-earned money and, in many cases, out of their life savings," Acting United States Attorney Patrick D. Robbins said in a statement. "Mr. Mattson will now be held to account on charges of perpetrating a scheme that he kept afloat only by using new investors' money to pay obligations to earlier investors—a classic Ponzi scheme." According to the indictment, between 2009 and 2024 Mattson solicited investors for the scheme. Mattson told investors he was placing their money into a partnership that owned an apartment complex in Riverside County. Prosecutors said Mattson did not tell the LeFever Mattson company about the investors and they were not listed as partners in the company's books and records. Some of the "off-books" investors received distribution payments, but prosecutors said Mattson used loans, comingled other assets and money from new investors to the alleged scheme to make the payments. The indictment also alleges Mattson had solicited investments in a second company that owned another apartment complex. After selling the complex and receiving $8 million in net proceeds, prosecutors said he concealed the sale from victims and was recruiting new investors in the complex after its sale. After the Securities and Exchange Commission began investigating Mattson in 2024, prosecutors allege he also deleted thousands of files that were relevant to the investigation. According to prosecutors, Mattson obtained at least $28 million for investments in the two companies alone. Mattson appeared in court Friday. If convicted, he faces a maximum of 20 years to each count of wire fraud and obstruction of justice, and 10 years on the money laundering count. Authorities urged anyone who believes they were "off-books" investors of Mattson to visit "The investigation in this case is ongoing. We encourage anyone who believes they may be a victim to come forward," said Special Agent in Charge Sanjay Virmani. "The FBI and our partners remain steadfast in our commitment to uncovering the truth and seeking justice for those affected."
Khaleej Times
21-05-2025
- Business
- Khaleej Times
UAE expats who lost millions of dirhams welcome court action against Heera Group founder
A court in Hyderabad has upheld non-bailable warrants against Nowhera Shaik, the embattled founder of the Heera Group, in multiple cases linked to the Dh2.36-billion Heera Gold scam, which defrauded thousands of investors, including many in the UAE. The Nampally metropolitan sessions court dismissed four separate petitions filed by Shaik on May 19, under Section 70(2) of the Indian Code of Criminal Procedure, which allows an accused to seek recall of a non-bailable warrant. The court noted that Shaik failed to appear despite conditional orders and multiple opportunities. Her absence was recorded even at the scheduled call time of 12.15pm. With the petitions dismissed, the previously issued non-bailable warning against her remain in force. One of the cases stems from a 2018 complaint filed by the Hyderabad Central Crime Station (CCS), while another relates to a fresh case lodged earlier this year by the Economic Offences Wing. The next hearing in both matters is scheduled for June 3. Shaik, who is facing multiple criminal proceedings across India, is accused of orchestrating a Ponzi-style scheme that promised investors monthly payouts of up to 36 per cent and annual returns as high as 80 per cent through various ventures under the Heera Group banner, including Heera Gold, Heera Textiles, and Heera Foodex. Among the 100,000-plus investors allegedly defrauded by the group across South East Asia, hundreds are from the UAE — many of whom pumped in life savings or took loans to invest. Some were lured by flashy marketing campaigns promising Dh3,250 in monthly returns on a Dh100,000 investment with a one-year lock-in. The company abruptly stopped payouts in 2018, sparking panic. Shaik was arrested later that year and subsequently released on bail. Heera Gold's UAE operations, including offices in Jumeirah Lake Towers and warehouses in Ras Al Khaimah and Sharjah, were later found abandoned. Shahbaz Ahmad Khan, president of the All India Heera Group Victims Association and a key whistleblower, welcomed the latest court action. 'She kept dodging court appearances, buying time while people's lives were wrecked. We welcome the non-bailable warrant. It's high time she is held accountable,' Khan told Khaleej Times. Khan said he has received fresh complaints from UAE residents who invested in Heera schemes. 'People are still reeling from the losses. Some have even lost homes and are being hounded by creditors,' he said. Earlier this year, the Indian Supreme Court directed Shaik to deposit Rs250 million (approximately Dh10.57 million) within three months or risk cancellation of her bail, a directive she has yet to comply with. Meanwhile, the Enforcement Directorate has attached 124 properties linked to the Heera Group, including 28 in recent months. Legal experts say the continued enforcement of non-bailable warrants marks a significant step, following her prolonged defiance. 'Given the number of victims in the UAE, the case is a reminder that due diligence is critical,' said Farhat Ali Khan of legal and business advisory firm Century Maxim International (CMI).
Bloomberg
20-05-2025
- Business
- Bloomberg
Jefferies Fraud Suit Against Ex-Fund Manager Tossed by Judge
A Jefferies Financial Group Inc. hedge fund's lawsuit claiming it was defrauded by a former portfolio manager who invested $100 million of its money in a Ponzi-like scheme was dismissed by a federal judge. The fund, 352 Capital, inappropriately sued Jordan Chirico under a federal racketeering statute that doesn't allow for the fraud claims it brought, US District Judge Valerie Caproni ruled Tuesday in Manhattan. She said that the remaining claims in the case by 352, which is part of Jefferies' Leucadia Asset Management arm, belonged in state court.
