Argyle Coin Halted by Securities and Exchange Commission Over Alleged Ponzi Scheme
May 21, 2019 by George Levy
The Securities and Exchange Commission (SEC) has obtained a court order halting an ongoing $30 million USD Ponzi scheme. It accuses South Florida based Argyle Coin of targeting more than 300 investors in the United States and Canada.
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According to an SEC press release, Argyle Coin, LLC, which promised investors the company would invest in whole diamonds to cut down and sell for profits, is allegedly a complex Ponzi scheme involving multiple companies.
New Argyle Coin Investors Paying Prior Investors
The SEC alleged that Jose Angel Aman, Argyle Coin’s principal, ran the business as a clear Ponzi scheme, with new investor funds paying prior investors. In the release, the SEC alleges that Argyle Coin’s fraud is a continuation of another scheme Aman devised involving two other companies he owns, Natural Diamonds Investment Co. (Natural Diamonds) and Eagle Financial Diamonds Group, Inc. (Eagle.)
Per the release, Aman was assisted by Harold Seigel and Jonathan H. Seigel, who were also involved and have interests in Natural Diamonds and Eagle.
According to the complaint, Aman, Argyle Coin, Natural Diamonds and Eagle misused or misappropriated more than $10 million of investor funds. The funds were used to pay earlier investors their purported returns, and to pay for many of Aman’s personal expenses, including rent on his home, purchases of horses, and riding lessons for his son.
Diamonds Tangled In a Web of Lies
“As alleged, Aman operated a complicated web of fraudulent companies in an effort to continually loot retail investors and perpetuate the Ponzi schemes as well as divert money to himself,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “The SEC’s diligent investigative work uncovered the Ponzi schemes and our goal is to bring justice to the harmed investors.”
What are your thoughts on this latest move by the Securities and Exchange Commission? Do you believe that the SEC’s actions are making for a more honest and transparent cryptocurrency market or are they stifling innovation? Let us know in the comments below!
Images via Pixabay
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