Police have arrested a 52-year-old American man in Sydney and charged him with a scam related to promising multi-million dollar fixed income and deceiving cryptocurrency investors.
The arrest is a major advance in the investigation into a global operation that entrapped a large number of investors, including retirees, who believed they were depositing money in well-known institutions such as Vanguard, Nomura and the Commonwealth Bank.
After depositing their money, just watch their accounts beep and the funds vanish into the cryptocurrency ecosystem.
New South Wales Police arrested Richard Emile Ayoub on Friday afternoon after Kings Cross investigators formed an investigative team in Talagranda in March to investigate a growing number of allegations of fixed income fraud.
On Friday morning, electronic devices and documents were seized from Mr. Ayoub’s unit after obtaining a search warrant.
Team “Strike Force Tallagranda” assisted the Financial Crimes and Cybercrime team.
The Australian New South Wales Police statement said:
Investigations revealed that a New South Wales man received support of more than $2.8 million from 14 potential investors, many of them retired, before transferring funds to Bitcoin between March and August of this year.
Investors have told police that they have been duped into investing in fake bonds, primarily through self-managed funds, by internet operators claiming to be credible financial institutions.
Mr. Ayoub was charged with 13 counts of obtaining a benefit by deception and 13 counts of reckless procurement of proceeds of crime.
He was refused bail and is due to appear before the Parramatta Court on bail on Saturday.
According to his public LinkedIn profile, Ayoub, a US citizen, was educated in Florida and previously worked for a Hong Kong-based company.
Police contacted one of the victims on Friday after arresting Mr. Ayoub.
A potential investor says he invested in a counterfeit high-yield Nomura bond after entering details on a comparison site and depositing the money into an account at a major Australian bank.
Representatives of financial institutions are aware of further investigations by the police in connection with similar allegations by investors.
This type of alleged investment fraud was first exposed by The Australian Financial Review after distributing a fake prospectus of an IFM high-yield bond fund to investors.
It was the first of many forged documents involving well-known international institutions.
The trademarks of “Citi”, “Vanguard”, “PIMCO”, “UBS”, “HSBC”, “Nomura”, “Schroders” and many others have been used in these types of scams to deceive retirees into investing their savings and managing their accounts in What they believe is high returns and safe investments.
The bottom line is that adequate research and counseling should be done before transferring any funds and distrust those who provide false evidence and cite well-known names in the arena to deceive investors.
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