On Monday, November 18, 2019, the U.S. Department of Justice (DOJ) reported on a case that involved victimizing investors. In particular, it was found that Swedish Citizen, Roger Nils-Jonas Karlsson and his firm, Eastern Metal Securities, were able to trick investors of $11 million combined.
Having arrested the fraudster in June 17, 2019, the original complaint was supposedly filed months earlier (i.e. March 4, 2019). Apparently, he has been defrauding investors as early as 2006, where he alongside individuals including Steve Heyden, Euclid Deodoris, Joshua Millard and many others, used websites to advertise shares, one example being their “Pre-Funded Reversed Pension Plan”.
The aforementioned plan was sold at $98 per share “in exchange for an eventual payout of 1.15kg of gold per share.” To keep investors’ confidence boosted, Karlson had guaranteed 97 percent return on initial investments if the gold payout was not achieved.
Since the investigation took place, the government looked into Karlsson’s case only to find that there was no way that the culprit would be able to pay such a return. Said amounts Karlsson was able to raise was supposedly sent to his personal account, where all funds were then spent on real estate in Thailand.
This isn’t a first for him, as he was supposedly involved in another website called www.hci25.com – attempting at luring in more investors a second time. When he was asked about payouts from some investors, he simply responded that it would have, “a negative effect on financial systems throughout the world.”
As for the investments made by investors, Karlsson supposedly advised said individuals to make payments in Bitcoin. So far, his endeavor resulted in nearly 3,575 victims.
This isn’t the first case of its kind, as just last week, OneCoin’s Founder was caught taking part in fraud and money laundering-related activities with a non-existing crypto, and the most recent RECoin and Diamond creator, who was involved in two fake initial coin offerings. Both cases led to swiping hundreds of thousands and millions from investors. This goes to show that fraudulent cases are surely to be caught one way or another!