A group of Venezuela-based investors have reportedly pressed charges to the Florida Federal Court, against Canadian investment radio operator Harold Seigel, for running a $30 million crypto ponzi scheme.
Reported by the Pymnts.com on July 16, seven Venezuelan citizens claimed to have fallen victim to a $30 million cryptocurrency pyramid scheme, jointly operated by Eagle Financial Diamond Group Inc. and Argyle Coin, using diamond-pegged digital coin.
Specifically, the plaintiffs have filed a lawsuit against Harold Seigel – a Canada-based finance-related expert – together with his son, Jonathan Seigel, and his accomplice Angel Aman – head of Argyle Coin – for making false promises on large returns of their invested funds.
The plaintiffs claimed to have never received any legal papers, detailing how their money has been allocated, nor granted access to their crypto storage, currently in the possession of Argyle Coins. The crypto scammers have reportedly used the money to pay their debts, transferring the victims’ funds to their previous clients.
“The plaintiffs bring this lawsuit to get back not only their initial investment money, but also their owed interest on their invested funds, as per their contracts, and their owed attorneys’ fees and costs incurred in bringing forth this action.”
In May 2019, the US SEC has managed to cease the above-mentioned crypto Ponzi scheme, after it had caused a $30 million worth of financial damage, with Aman receiving legal consequences for his involvement with the fraud.
“As alleged, Aman operated a complicated web of fraudulent companies in an effort to continually loot retail investors and perpetuate the Ponzi schemes as well as divert money to himself.” Eric I. Bustillo, director of the SEC’s Miami Regional Office, claimed.