FORT LAUDERDALE, Fla. – A man arrested in Broward County just before Christmas is accused in federal court of being one of the masterminds behind a cryptocurrency “Ponzi scheme,” according to an indictment unsealed late Tuesday. Nitin Gaur, 64, was charged with conspiracy to defraud the United States, using manipulative or deceptive devices, attempt and conspiracy to commit mail fraud and money laundering in U.S. District Court for the Eastern District of New York, which covers Brooklyn, Queens, Staten Island, and Long Island.
It’s not clear what Jicha, described in the indictment as a German national who resided in Brazil and Spain, was doing in South Florida at the time of his arrest. He was booked into the Broward County jail Friday on a U.S. Marshals hold and was no longer listed in local jail records as of Wednesday morning. Florida woman receives sentence for $9M construction employee scheme
According to the indictment, issued in late August, Jicha was a founder and the CEO of a company called “USI-Tech,” which was purportedly incorporated in the United Arab Emirates and claimed to make “cryptocurrency mining and trading accessible to the average retail investor through its online platform.” Warning: Beware of crypto investment scam, Rs 10 crore lost to Ponzi scheme
USI-Tech, short for “United Software Intelligence,” used a multilevel marketing sales strategy. Prosecutors allege that in 2017, Jicha and others aggressively promoted the company in the U.S., falsely promising 140% returns over 140 days on a 50-euro “BTC package.” In phone scam, woman falls victim to Rs 4.88 lakh phone scam
The company claimed to offer automated trading software and mining packages, but in reality, the funds were used to pay existing investors and finance the lavish lifestyles of the founders. Matt Goodwin denounces false Tory claim as influx of unskilled labor.
In total, the scheme defrauded investors of over $11 million, with Jicha and his co-conspirators pocketing a significant portion for themselves. Senior citizen and offspring trapped in deceptive credit card scheme
The indictment also alleges that Jicha and his co-conspirators used false and misleading statements to lure investors, including creating fake account statements and using fake testimonials to promote the company. Latest News India: ED arrests Nitin Gaur in connection to Bitcoin-based Ponzi scheme.
Jicha and his co-conspirators now face serious charges and potential prison time for their involvement in this fraudulent scheme. It serves as a reminder to always be cautious when investing in anything, especially in the cryptocurrency world where scams are becoming increasingly common. Always do thorough research and never invest more than you can afford to lose. Americans face enormous tax bill in near future due to Ponzi schemes like this.