Florida man escapes paying a $4.5M SEC penalty over a crypto Ponzi scheme

The founding father of a multi-million crypto Ponzi scheme has escaped paying a $4.5 million penalty to the U.S. Securities and Change Fee.

On March 23, the united statesDistrict Court docket of Southern Florida initially ordered Jose Angel Aman to pay the SEC greater than $4.2 million in disgorgement, and $300,000 in prejudgement curiosity. Nonetheless, the court docket deemed the invoice was happy that very same day as a consequence of restitution paid in a parallel case from 2019.

In response to an emergency order obtained by the SEC in Could 2019, Florida-based Aman operated three consecutive Ponzi-schemes which made up a “sophisticated internet of fraudulent firms in an effort to repeatedly loot retail traders and perpetuate the Ponzi schemes in addition to divert cash to himself,” pulling in roughly $30 million from an investor base of greater than 300 folks primarily based within the U.S, Canada, and Venezuela.

His efforts resulted in a seven-year jail sentence, three yr’s supervised launch, and an order to pay greater than $23.8 million to the SEC in restitution.

Aman was the precept behind Argyle Coin, a crypto Ponzi-scheme he operated alongside Canadian radio host Harold Seigel and his son Jonathan Seigel. The scheme falsely promised a “risk-free” funding that was backed by what the SEC described as “fancy coloured diamonds,” with traders being promised publicity to the diamond market.

Nonetheless, it was later discovered that Aman was distributing the funds acquired from new traders to earlier backers, misrepresenting the funds as being income derived from their investments. On the similar time, the fraudster was additionally utilizing his purchasers’ cash on private bills together with designer-label clothes and horse-riding classes. The SEC’s criticism famous:

“Aman, Pure Diamonds, Eagle, and Argyle Coin, misused or misappropriated greater than $10 million of investor funds to pay different traders their purported returns and for Aman’s private bills, together with hire on his house, purchases of horses, and using classes for his son.”

The newest ruling involved Aman’s “Pure Diamonds Funding Co”, and beneath common circumstances, the Floridian would’ve been required to pay the $4.5 million if it weren’t prior expenses.

As a part of the ultimate judgment, Aman is prohibited from partaking in a big selection of violations of securities acts, and securities alternate acts, resembling “make use of any system, scheme, or artifice to defraud” and “acquire cash or property by way of any unfaithful assertion of a fabric reality.“