Scammers caught in $100 crypto fraud

A Swedish citizen has been pleaded guilty to investment fraud of $100 cryptocurrency in gold.

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A Swedish citizen has been pleaded guilty to investment fraud of $100 cryptocurrency in gold. 

The news came out after the US Department of Justice investigated and the Jonas Karlsson was found guilty of securities, wire fraud, and also money laundering. The 47-year-old citizen was the operator of Eastern Metal Securities (EMS). Moreover, he used a fake website to participate in the fraud scheme and convinced others to do the same in return for cryptocurrency.  

According to the US agency, Karlsson offered investors a share of a “plan” that would eventually payout in gold, a high-value commodity, from 2012 to 2019. With that, each investor was promised an eventual return of 1.15kgs in gold, worth over $45,000 as of January 2019. They were also guaranteed about the 97% funds return if the return did not happen.

Another website operational by the accused was used to scam people and was named as “Pre Funded Reversed Pension Plan” (PFRPP). For example, on one occasion, Karlsson explained that a payout had not occurred because releasing so much money all at once could harm financial systems. Therefore, he falsely represented the system and made a way out of the trouble.  

Investor cash was sent to Karlsson’s bank accounts, where it was later used to purchase homes and a resort in Thailand. That is how the investment was made. The criminal complaint was filed against Karlsson on March 4, 2019. He was arrested in Thailand on June 17, 2019. He was not alone but with six of his allies and was extradited to the US.

Karlsson faces a maximum sentence of 20 years in prison for the wire fraud and securities fraud charges, as well as a further 20 years behind bars for the money laundering charge.