$2 million recovered from Zeek net-winners over 2018 first quarter

May 23, 2018 mlmdetective 0

The Zeek Rewards Receiver’s Status Report for the first quarter of 2018 reveals another $2 million has been recovered from net-winners.This brings the total amount currently held by the Zeek Receivership to $27.8 million.
The Zeek Recievership is primarily engaged in the US net-winner lawsuit, following up claims against foreign net-winners, the USHBB lawsuit and the ongoing VictoriaBank saga.
While a final distribution to Zeek Rewards victims is pending, the Receiver advises a smaller interim distribution is unlikely.
We hold funds sufficient to make another small interim, partial distribution.
However, the expense associated with making such a distribution counsels against making it.
Instead, the Receiver expects…

USI-Tech securities fraud cease and desist issued in Ohio

May 23, 2018 mlmdetective 0

As part of Operation Cryptosweep, Ohio has issued USI-Tech with a securities fraud cease and desist.The May 18th notice identifies USI-Tech Limited as the sole respondent, through a PO Box address in Dubai.
The cease and desist appears to have been issued following a local investor complaint.
After being pitched on USI-Tech by “Mark Grobril” [sic] in April 2017, the unnamed Ohio investor (R.V.) deposited $22,000 into USI-Tech.
This would be USI-Tech’s infamous Bitcoin Package Ponzi scheme, officially launched in mid 2017.
Note that although misspelt, I believe the complaint refers to Mark Ghobril (right),one of USI-Tech’s top promoters.
When R.V. told (Ghobril) of his intention to withdraw…

DasCoin securities fraud cease and desist issued in BC, Canada

May 22, 2018 mlmdetective 0

DasCoin is the latest MLM cryptocurrency to receive a securities fraud cease and desist.As part of Operation Cryptosweep, the British Columbia Securities Commission issued DasCoin with a cease and desist notice.
As at the time of publication the DasCoin cease and desist notice hasn’t been made public. Nor do we know exactly when it was issued.
Seeing as the notice is part of Operation Cryptosweep however, I believe DasCoin was served sometime over April or May.
On the MLM side of things DasCoin is promoted through Net Leaders (formerly Coin Leaders).
On the Net Leaders website, the company markets itself as “the home of DasBlockchain”.

Kidnapping and extortion escapades in India reveal BitConnect owner?

May 22, 2018 mlmdetective 0

A builder in India has been arrested as part of a Rs. 1.5 billion bitcoin extortion bust ($22.7 million USD).Three months ago local builder Shailesh Bhatt had filed a complaint with the Gujurat Criminal Investigation Department.
In his complaint Bhatt alleged extortion by the Amreli police.
Amreli is a district in Saurashtra, Gujurat.
Upon investigating Bhatt’s complaint, Gujurat CID agents discovered
Bhatt had extorted bitcoins worth crores from others before he was kidnapped by the Amreli police.
Kidnapped? Yeah… this gets messy.
Two years ago another man, Satish Kumbhani, began promoting the BitConnect Ponzi scheme across Gujurat.
The builder, Shailesh Bhatt, was one of the victims that fell…

Trident Crypto Fund cease and desist issued in New Jersey

May 22, 2018 mlmdetective 0

Trident Crypto Fund emerged in April 2018 as yet another MLM cryptocurrency Ponzi scheme.Built around the recently launched TDC ICO, Trident Crypto Fund solicits investment in bitcoin on the promise of daily ROIs of up to 1% in TDC points.
Following an Operation Crypto-Sweep internal investigation, New Jersey has issued Trident Crypto Fund with a securities fraud cease and desist.
Although New Jersey doesn’t go into specifics regarding it’s investigation, it’s easy enough to put two and two together.
Outside of Trident Crypto Fund TDC points are worthless.
The business model sees bitcoin transferred to Trident Crypto Fund’s anonymous owners, in exchange for TDC.
TDC is…

US cracking down on crypto scams through Operation Crypto-Sweep

May 22, 2018 mlmdetective 0

The North American Securities Administrators Association announced Operation Crypto-Sweep on Monday.Through Operation Crypto-Sweep, NASAA has revealed seventy cryptocurrency company investigations.
NASAA members from more than 40 jurisdictions throughout North America participated in “Operation Cryptosweep,” which to date has resulted in nearly 70 inquiries and investigations and 35 pending or completed enforcement actions related to ICOs or cryptocurrencies since the beginning of May.
As above, around half of the investigations are completed or pending enforcement.
For those unfamiliar with the association, NASAA describe themselves as
a voluntary association whose membership consists of 67 state, provincial, and territorial securities administrators in the 50 states, the District of…

Payza’s Firoz Patel and wife pursued for millions in unpaid taxes

May 21, 2018 mlmdetective 0

In addition to being a wanted fugitive on the run from money laundering charges in the US, Payza co-founder Firoz Patel is also in trouble with Canadian authorities.According to a May 20th report by the Montreal Journal, Firoz and his wife Nazlin Patel owe the Revenu Quebec $14 million CAD in unpaid taxes ($10.8 mill USD).
In an attempt to recover the outstanding tax bill, Revenu Quebec won a judgment against the Patel’s Montreal residence.
The property is valued at over $2 million CAD and is part of Revenu Quebec’s attempts to recover $3.5 million owed by Nazlin Patel.
Patel is believed to dodged…

119 OneCoin arrests in China, $7.1M of Greenwood’s funds frozen

May 16, 2018 mlmdetective 0

Putting to shame the endless parade of warnings issued elsewhere in the world, Chinese authorities have made another 119 OneCoin related arrests.Public court documents have also detailed the recovery of a large sum of money stolen from OneCoin victims, including $7.2 million stashed in a bank account belonging to Sebastian Greenwood.
Authorities in China’s Hunan province began investigating back in 2016. Yesterday authorities in Hunan released information pertaining to another one hundred and nineteen arrests.
Since their arrest, each of the arrested suspects have confessed to participation in OneCoin as an investor. Two of the arrested suspects have already been sentenced to more…

FTC seeks liquidation order for crypto assets in MLM pyramid case

May 12, 2018 mlmdetective 0

Citing cryptocurrency as inherently “insecure” and “volatile”, the FTC is seeking a court order requiring defendants to liquidate crypto assets held into USD.The May 11th motion was filed as part of the FTC’s case against Scott Chandler, Louis Gatto, Eric Pinkston & Thomas Dluca.
The four defendants stand accused of scamming the general public through a series of pyramid and/or Ponzi schemes.
The FTC argues liquidation of the defendant’s crypto assets is required
in order to preserve the value of the frozen cryptocurrency and prevent it from being stolen, lost or dissipated.
If granted, the FTC’s requested liquidation order will require Chandler, Gatto, Pinkston and…

OneCoin a “pyramid game” for tax in Sweden, not a cryptocurrency

May 9, 2018 mlmdetective 0

Evidently OneCoin investment in Sweden has resulted in a few taxation issues popping up.While the level of investment into OneCoin from Sweden as a whole isn’t known, it’s significant enough for the Swedish Taxation Authority to add a OneCoin query to its cryptocurrency taxation FAQ.The fourth question on the Swedish Tax Authority’s FAQ list asks, “Does OneCoin count as a cryptocurrency?”The answer to which is “no”. The Swedish Tax Authority sees OneCoin as “basically a pyramid game”.The Swedish Tax Agency’s view is that onecoin is not a crypto currency. The Swedish Tax Agency’s view is instead that onecoin is basically a…