Four men are facing some serious heat after being charged in connection with a crypto investment fraud and money laundering scheme that allegedly swindled unsuspecting investors out of 900 million Norwegian kroner, that’s about $80 million.
Years of deception
Norway’s National Authority for Investigation and Prosecution of Economic and Environmental Crime shared that these guys were running a deceptive operation that left thousands of victims worldwide empty-handed.
State prosecutor Joakim Ziesler Berge called it one of the largest fraud investigations in the country’s history.
Between March 2015 and November 2018, these alleged scammers convinced people to invest in a venture that supposedly had its hands in gas, mining, and real estate projects.
Investors were promised shares and cryptocurrencies issued by the company. Sounds legit, right? But it wasn’t.
Classic Ponzi-sheme moves?
The authority’s investigation revealed that the scheme didn’t make any real investments, instead, they paid off early investors with funds from new recruits, as in the classic Ponzi scheme tactics.
To cast a wider net, they even held presentations promoting these fraudulent investment packages at major events across different countries, encouraging victims to rope in their friends and family.
But wait, it gets even shadier. Norway alleges that over 700 million Norwegian kroner, around $62 million was laundered through a Norwegian law firm’s client accounts and various companies based in Asia.
“The use of client accounts and company structures in Norway and abroad has complicated efforts to trace the funds.”
Not guilty?
The defendants, described as Norwegian men in their 50s, 60s, and 70s, are facing charges for their roles in the operation.
While three of them are accused of collecting funds, the fourth is charged with facilitating money laundering.
Of course, not everyone is admitting guilt. Christian Flemmen Johansen, representing one of the accused, claims his client denies all allegations.
Another defense attorney, Ole Petter Drevland, echoed similar sentiments for his client, asserting no criminal responsibility.
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