OneCoin Plaintiffs Succeed in Reopening the Class-Action Against the Ponzi Scam

Victims of the fraudulent cryptocurrency, OneCoin, have recently persuaded the Judge to reopen the case reports BehindMLM. As per the claims made, a letter expressed the viewpoints of both plaintiffs and defendants. Obviously, the former wants justice, while the latter prefers to have further legal processes halted once and for all.

Valerie Caproni, the judge that presided over the case, lifted the stay and provided the defendant with a deadline for submission of 8th May. Within this time, the defendant must be prepared to answer outstanding complaints.

For the time being, OneCoin’s members Mark Scott and David Pike are currently in the eyes of the justice system for laundering money from the accounts. In particular, Scott was convicted back in November 2019, while Pike has been talking to the DOJ and could end up pleading guilty.

In the confines of the class action suit, Scott and Pike face separate charges of money laundering and bank fraud.

Interestingly many players seem to have been involved in this scam. An example is that of Florida attorney, Nicole Huesmann, who played the role of laundering funds through Mumbelli Group. Additionally, former head, Konstantin Ignatov, and his sister, Ruja were also involved – where the trio is holding a neutral position in lifting the stay.

As per Behind MLM, plaintiffs have since been advised to file a proposed schedule by Friday, 5/8/2020.

Read Original/a>
Author: Nirmala Velupillai

OneCoin Won’t Be Investigated by NZ Authorities but May Have Shut ePayments Systems Down

While New Zealand’s Commerce Commission has announced that it won’t investigate OneCoin, the ePayments Systems shutdown may be related to it.

The first warning against OneCoin was issued by the Financial Markets Authority back in 2018. In 2019, NZ police filed a report detailing fraud related to OneCoin at the Commerce Commission. The organization has since reported it has decided not to pursue an investigation, claiming that:

“The scheme was no longer operational in New Zealand and there was likely to be little prospect of obtaining compensation for participants.”

The Samoan Religious Community Promoted OneCoin in NZ

Among the promoters of OneCoin includes the Samoan religious community, which promoted it in NZ. Since January 2020, 3 Samoan religious organizations have been placed under investigation for money laundering.

It remains unclear who will be held accountable for the loss of millions of dollars.

Is OneCoin Behind the ePayments Systems Shutdown?

ePayments Systems, the largest digital payment company in the UK, has been shut down by the Financial Conduct Authority (FCA) on February 11th.

It’s believed that over £100 million in client funds were lost. Rumors of malpractice include OneCoin’s complicity in fraud because Robert Courtneidge – one of the former directors at ePayments Systems – worked for the law firm Locke Lord as a Global Head of Cards and Payments. Locke Lord also had, as a client, Ruja Ignatova, OneCoin’s founder.

Two months before Courtneidge left Locke Lorde, Ignatova suddenly disappeared, potentially with a lot of money in laundered investor funds from OneCoin.

Had Courtneidge Worked Closely with Mark Scott?

Back in November 2019, Mark Scott got a conviction for laundering more than 400 million euros for Ignatova, money that is unaccounted for at the moment.

It’s assumed that Courtneidge worked closely with Mark Scott in order to be appointed as ePayment Systems director. This relationship may have involved laundering enormous amounts of money for Ignatova through ePayment Systems.

Could this be why the FCA has shut down ePayments Systems under allegations of money laundering?

Courtneidge Had no Comment on Connections to OneCoin

When approached by the Financial Times on his connections to OneCoin, Courtneidge refused to comment. The same goes for ePayments Systems and Locke Lorde. The question remains whether ePayments Systems was used to steal money for Ignatova or not.

Read Original/a>
Author: Oana Ularu

Top Onecoin Ponzi Scheme Recruiters Launch A Clone Called Circle Of Finance (Invicta)

  • OneCoin token Ponzi scam affiliates are in the pipeline to form a new tokenized project, Circle of Finance (Invicta).
  • Two of the top ranking officials in the Onecoin scam, Veselina Valkova and Habib Zahid, are associated with the scam.

In late November, details emerged of the OneCoin Ponzi scheme spinoff, Circle of Finance (Invicta) which sounded a whole lot more like the its predecessor. According to BehindMLM, the company is incorporated under the name TradeInvicta, an Estonian based shell company set up by Heaven Invest and exists in name only, no transactions made through it.

According to general company information from the Estonian authorities, TradeInvicta is registered under Veselina Valkova and Habib Zahid, two of the many Onecoin scammers, who ran away with over $1 billion USD in users funds. Habib is believed to have been a top recruiter in Onecoin scam with Veselina playing a more key role as one of the inner circle members of the founder of Onecoin, Dr. Ruja Ignatova, who has since vanished.

At the launch of the Circle of Finance (Invicta), many of those who followed were convinced the project was a resurrection of the Onecoin scam. However, through their marketing and advertisements, the new entity is branding itself as a completely different platform despite offering the same corny promises Onecoin offered investors.

The new platform promises to offer users a network including forex, network marketing, e-commerce, payment processing and exchange & remittances. Only exchanges were missing from Onecoin’s initial plan.

This is a pretty basic MLM scam that is mainly targeting the Onecoin customers who were scammed earlier and the newbies in the field with an option to cash out on an exchange sound interesting. While the site is yet to be up and running, it is important for cryptocurrency investors to be on the lookout. We will follow up any details arising from the Ponzi as it arises.

Read Original/a>
Author: Lujan Odera

OneCoin May Have Used Fake Reviews in Ponzi Scheme – Is Anyone Surprised?

The cryptocurrency project launched by OneCoin which was accused of being a Ponzi scheme by authorities may have used fake reviews on Quora and TrustPilot.

The Digital Forensic Research Lab (DFRLab) said in a blog post from Wednesday that the OneCoin campaign was initiated at the same time as its founder’s (Ruja Ignatova) disappearance, after she has had many legal cases brought upon her.

In March 2019, a supposed leaders at OneCoin was arrested for perpetuating a pyramid scheme. At the same time, Ignatova was charged with money laundering, and wire and securities fraud. Lawyer Mark Scott was found guilty of money laundering as well.

OneCoin Reviewed with 5 Stars Many Times in October

Researchers at DFRLab discovered that in October 2019, OneCoin received many 5-star reviews on TrustPilot. Here’s what’s written in the research lab’s blog post:

“Of the 579 reviews for OneCoin on the site, 90 percent were positive. Of the five star ratings, about 400 were published within the span of a single month.”

The researchers also say the bad reviews were practically hidden by the 5-star ones.

The Authenticity of TrustPilot Reviews Can’t Be Determined But…

The DFRLab team couldn’t prove that the reviews aren’t authentic, as the TrustPilot’s interface doesn’t allow to make such a determination. However, the influx of good reviews is abnormal and came at the same time as OneCoin was going through some serious legal problems.

However, when the answered about OneCoin from Quora have been analyzed, there were clear signs of inauthenticity, as the profiles that left answers don’t have pictures, nor bios, and they all have revealed an interest only in OneCoin-focused discussions. The respondents claimed they were experts in the cryptocurrency field, but their answers were restricted to OneCoin’s value and viability. This is what the DFRLab blog post concludes:

“While there was no direct evidence tying these inauthentic profiles and reviews to OneCoin employees or evidence of automated activity on either platform, the profiles and favorable reviews nonetheless served to boost trust for the OneCoin brand as it faced a multibillion-dollar scandal.”

Searches on social media for the names of the respondents turned back no matching results.

Read Original/a>
Author: Oana Ularu

OneCoin Website Ceases Operations As Authorities Zero In On the Scammers

The infamous crypto Ponzi scheme OneCoin website has gone offline several months following US government officials indicted one of the key suspects involved in the scam, Cointelegraph reports. According to MLM scam monitor, OneCoin did not return live results from Nov.30.

After investigations, an official from EurlD which hosts the registry’s domain revealed that the website has been offline following the ongoing criminal proceeding brought forward against OneCoin.

A written response from EurlD explained that the domain name is being investigated. The statement directed the interested people to go to their WHOIS to check the current condition of the company’s domain name.

This development is the most recent in a number of disclosures lately in the efforts to take down the OneCoin scam. The ponzi scheme was in operation for various years and stole money from investors to the tune of more than $4 billion.

Last month the investigators in collaboration with the prosecutors indicted a lawyer with close ties with OneCoin’s co-founder Ruja Ignatova. The prosecutors alleged that the lawyer was vital in helping Ignatova to launder the proceeds of the scam worth about $400 million.

OneCoin’s operations became suspicious in 2015 after Cointelegraph came up with an expose based on the research done by BehindMLM.

Following the expose, various governmental authorities across the world have warned their citizens against the scheme that promised innocent investors with huge returns for very few investments.

While Ruja Igantova remains on the run, her brother, Konstantin Ignatov, a fellow co-founder of the company, agreed that he was guilty for money laundering as well as fraud and could be jailed to about 90 prison years.

In the recent past, there have been cases of fraudulent crypto projects. Just this month, the developer of HEX cryptocurrency, Richard Hart, faced massive accusations and suspicions of a scam after he promised investors of free tokens including Bitcoin. HEX says it the inaugural blockchain paying high interest to its investors. Similarly, Chinese based IDAX crypto exchange closed its operations saying that its CEO had vanished with the keys to its cold wallets raising suspicion of fraudulent schemes.

Read Original/a>
Author: Joseph Kibe

Phoenix Fund Investments Linked to The OneCoin Money Laundering Scheme, Stole $110 Million

OneCoin was recently charged with fraud and money laundering. The founder’s brother, Dr. Rija Ignatova, admitted guilt to the charges and also accused Phoenix Thoroughbreds of being funded using the money laundered through OneCoin. Ignatova claims that the racehorse investment company Phoenix received $110 million from the OneCoin scam.

Phoenix Thoroughbred’s founder Amer Abudlaziz, however, denied the allegations against his company, saying it was not funded using money stolen through the OneCoin scheme. Contrary to Abdulaziz’s claims, the federal government has reported that Phoenix Thoroughbred received $110 million through an unnamed account with an Irish bank from OneCoin back in 2017.

It was also confirmed that the said account was used by Mark Scott, a former advocate, to launder money for OneCoin. The lawyer was found guilty and convicted for fraud and money laundering last week and stands to serve 50 years in federal prison.

According to a statement report released recently, Phoenix Fund Investments has denied the allegations brought against it and the founder Mr. Abdulaziz during the criminal proceedings against OneCoin. The company is determined to defend itself in a court of law and prove it was not linked to the fraud scam in any manner. The fund claims that Abdulaziz and his company have always acted in accordance with the stipulates of the law and is ready to contest the allegations.

There have also been allegations that the company misrepresented itself by saying it is a regulated thoroughbred fund while it is actually not regulated according to Racing Post. It is also held that the firm has not been operating as an investment fund despite it claiming to be one.

Recently, Phoenix Fund Investments entered into voluntary liquidation. It is not clear yet whether the liquidation decision is due to the recent allegations of money laundering in connection to the OneCoin scheme or otherwise.

The British Horseracing Authority has issued a statement to the Irish authorities confirming that it is aware of the case and already working on it with the aid of relevant authorities.

Read Original/a>
Author: Denis Miriti

OneCoin Head Paid Son of Former President George Bush $300,000 for Attending Crypto Meeting

  • OneCoin scam was headed up by Ruja Ignatova and brother Konstantin Ignatov.
  • Neil Bush was involved in a deal that would’ve potentially made him 10% of the profits from OneCoin sales.

OneCoin has been in the middle of a lot of legal trouble recently, considering the massive scam that the cryptocurrency has proven to be. Mark Scott, who formerly worked at the Locke Lord international firm as an attorney, is being tied into this trouble for allegedly conspiring with the creators of the Ponzi scheme to launder money. Ruja Ignatova, also known as Cryptoqueen, was already indicted on the money laundering charges, and has since gone into hiding, though brother Konstantin Ignatov was already apprehended.

Presently, Scott is unwilling to accept the charges that the courts are placing on them, stating that he believed the entire process was legal went he got involved. In fact, Arlo Devlin-Brown, the attorney for Scott, stated to the judge overseeing this case that Ignatova’s meeting with Neil Bush, brother of former President George W. Bush, was involved in discussions with Ignatova, leading Scott to believe that the scam wasn’t one. Devlin-Brown explained,

“This isn’t just: ‘We saw the name Bush on a transaction and cut a subpoena.’”

FBI agents involved with the investigation have previously contacting Neil Bush, considering that he is a board member of Hoifu Energy. Hoifu Energy is owned by Dr. Hui Chi Ming, and it was involved with a massive $60 million loan deal that was financed with OneCoin and cash. If Bush were to testify about the role he played, it would show that the deal isn’t actually a scam, as Devlin-Brown states.

US Judge Edgardo Ramos questioned David Garvin, Scott’s counsel, on whether there was a meeting that involved Hui, Bush, and Ignatova, to which Garvin answered that there was. Garvin confirmed that Bush received a payment of $300,000 for his attendance.

Supporting his statement, Garvin took his time in court to read information about an FBI interview with Neil Bush, during which time the investor was set to profit from the deal. The report states,

“Bush recalled that the head of Hoifu Energy, Dr. Hui Chi Ming, received a bunch of cryptocurrency for an oil deal in Madagascar. Bush had a residual interest in the cryptocurrency from the oil deal. Bush met the woman from the cryptocurrency company, Ruja Ignatova, in Hong Kong with Dr. Hui.”

Based on the FBI files, Garvin stated that Neil Bush would be privy to 10% of the entire deal, in the event that Hui was able to sell the cryptocurrency. Ultimately, the deal failed, but that doesn’t necessarily excuse Bush. The judge stated that Bush’s testimony won’t be relevant for Scott’s own defense.

Presently, Konstantin Ignatov could be sentenced to prison for 90 years, based on his involvement. He plead guilty to both money laundering and fraud, signing a plea deal last month that was made public two days ago.

Read Original/a>
Author: Krystle M

US Court Concurs with Evidence Proving OneCoin Money Laundering Operation

Pieces and bits of the case against OneCoin and its executives by DOJ are being put together, and we can now get a clear picture of where the case is headed. Pieces of evidence have unsealed the bits, and it makes things more understandable.

Recent filings containing potentially privileged information show that there is a sealed order that reveals the position of the New York case on DOJ’s evidence. This revealing order was made on July 23rd. It was in response to a filing that requested permission to “apply a crime-fraud exception” by DOJ, to privileged communications.

The communications are between OneCoin, companies affiliated to OneCoin, insiders, its executives, and attorneys.

The court however observed that for such an exception to apply (crime-fraud) the government should show that

“(1) a fraud or crime has been attempted or committed, and

(2) the communications or materials in question were in furtherance of the fraud or crime.”

The government says that it satisfies the requirement of the probable cause and specifically money laundering and wire fraud. The complaints establish that

(1) There is a probability that OneCoin is a fraudulent pyramid scheme.

(2) That Ruja Ignatova and Mark Scott took part in a conspiracy to defraud the OneCoin fraud proceeds.

(3) That Scott was involved in the laundering of almost $400 million from 2016 to 2018 from OneCoin scheme.

The evidence clearly shows that parties belonging to OneCoin, including Ignatova and the International Marketing Strategies Limited did seek and acquired legal advice from Scott. It also revealed that Scott initiated MSSI to obtain millions of dollars for OneCoin illegally.

Evidence also proved that the receiving firms facilitated fraudulent activities and thus facilitating the laundering scheme. The order is, however, not a judgment, but it clearly shows the evidence by DOJ is substantial.

The information is convincing enough that the US court concurs that OneCoin is a pyramid scheme and indeed money laundering happened.

Read Original/a>
Author: Daniel W