The mastermind behind what the federal government says is among the largest cryptocurrency Ponzi schemes prosecuted within the US has been sentenced to fifteen years in jail. While crypto scams have been getting increasingly common, Swedish citizen Roger Nils-Jonas Karlsson defrauded 1000’s of victims and stole tens of thousands and thousands of {dollars} over a interval that lasted nearly a decade. He pleaded responsible to securities and wire fraud, in addition to cash laundering fees on March 4th.
According to the Department of Justice, Karlsson ran his fraudulent funding scheme from 2011 till he was arrested in Thailand in 2019. He focused financially insecure people, equivalent to seniors, persuading them to make use of cryptocurrency to buy shares in a enterprise he known as “Eastern Metal Securities.” Based on info from courtroom paperwork, he promised victims large payouts tied to the worth of gold, however the cash they handed over wasn’t invested in any respect. It was moved to Karlsson’s private financial institution accounts as an alternative and used to buy costly houses and even resorts in Thailand.
To maintain his scheme working for nearly a decade, he’d rebrand and would present victims account statements in an effort to persuade them that their funds are safe. Karlsson would then give them varied excuses for payout delays and even falsely claimed to be working with the Securities and Exchange Commission. During the sentencing, US District Judge Charles R. Breyer ordered his Thai resorts and accounts to be forfeited. He was additionally ordered to pay his victims within the quantity of $16,263,820.
Acting US Attorney Stephanie Hinds of the Northern District of California stated:
“The investigation into Roger Karlsson’s fraud uncovered a frighteningly callous scheme that lasted more than a decade during which Karlsson targeted thousands of victims, including financially vulnerable seniors, to callously rob them of their assets and all to fuel an extravagant lifestyle surrounded by luxury condominiums and lavish international vacations. The court’s decision to order a 180-month prison term reflects the fact that Karlsson’s cryptocurrency Ponzi scheme is one of the largest to be sentenced to date and ensures that Karlsson now will have plenty of time to think about the harm he has caused to his victims.”
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