Posted 11 months ago | by Ben Armstrong
South African Fraudster Finally Charged After Scamming up to $28 million
In a recent release published by the Commodity Futures Trading Commission (CFTC), suspected crypto scammer Dennis Jali and his co-conspirator were finally caught and are now being prosecuted in US courts for defrauding $28 million worth of cryptos from the public.
By targeting church communities, under the guise of a private limited business named “1st million”, Jali, Arley Ray Johnson, and John Frimpong had fooled people thinking investments in the business will provide them with substantial financial gains and are supporting charitable religious causes.
By promising a monthly rate of return of 30% and guaranteeing a full refund of the original investment, the opportunity seems to be a lucrative investment to many and is even more convincing when Jali claimed to achieved a 1,700% return in past funds.
Other false claims include making a return of 400% in six weeks and, “My wife has never worked a day in her life,” Jali claimed.
Crimes Hurt People
The scheme lasted for 7 years with over 1000 victims who have lost as much as $28 million.
None of the victims' money had been invested through any means, small sums were distributed to a few investors, creating the illusion of high return, and creating a Ponzi scheme.
In the criminal complaint, part of this money was used at the discretion of the trio. Up to $7 million were frivolously spent on expensive cars, vacations, business expenses, and even their living expenses.
The Maryland District attorney had indicted Jali last year, who at the time made a quick escape to South Africa and was subsequently captured by South African authorities. The three were charged with wire fraud, security fraud, money laundering, and conspiracy.
The CFTC will be seeking:
“Full restitution to defrauded pool participants, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against violations of the federal commodities laws, as charged.”
There are Loads of Scams Out There
As more and more people are introduced to cryptos, bad actors will keep thinking of new ways to defraud gullible or newcomer investors.
1. Don’t send money to giveaway
2. Don’t use QR code generators
3. Look out for fraudulent coins
4. Beware of phishing websites
5. Look out for ransomware
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