A citizen of Sweden pleaded responsible to securities fraud, wire fraud, and cash laundering expenses that defrauded greater than 3,500 victims of greater than $16 million.
Roger Nils-Jonas Karlsson, 47, and his firm, Jap Metallic Securities (EMS), was charged in a criminal complaint filed March 4, 2019, with crimes involving a scheme to defraud victims of greater than $16 million. Karlsson, additionally identified by a number of aliases together with Steve Heyden, Euclid Deodoris, Joshua Millard, Lars Georgsson, Paramon Larasoft, and Kenth Westerberg, was arrested on June 17, 2019, in Thailand and was extradited to the United States to face the charges. A federal grand jury indicted Karlsson and EMS on July 25, 2019. Karlsson pleaded responsible to all the fees pending towards him. EMS has ceased to exist.
The indictment and a factual foundation filed by the federal government describe a long-running scheme by which Karlsson and EMS used an internet site to commit wire fraud towards 1000’s of victims. Particularly, the indictment explains that from Nov. 27, 2012, via June 19, 2019, Karlsson and EMS used www.easternmetalsecurities.com to make fraudulent representations and persuade victims to ship funds utilizing a digital forex trade. Throughout the identical interval, Karlsson and EMS used misleading “units and contrivances” to promote securities after which tried to hide the proceeds of the wire fraud and securities fraud.
Through the proceedings, Karlsson admitted that he used the web site to ask potential buyers to buy shares of the plan for lower than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an quantity of gold which as of Jan. 2, 2019, was value greater than $45,000. Karlsson suggested buyers that, within the unlikely occasion that the gold payout didn’t occur, he assured to them 97% of the quantity they invested. Karlsson admitted he had no solution to repay the buyers. As an alternative, the funds supplied by victims have been transferred to Karlsson’s private financial institution accounts and he then used proceeds to buy costly houses and a resort in Thailand.
As the federal government has alleged, Karlsson additionally used a second web site, www.hci25.com, to make a number of false communications to potential buyers. Karlsson introduced the buyers in HCI25 along with the buyers within the “Pre Funded Reversed Pension Plan” (PFRPP) and posted a number of communications to delay the second buyers would notice there can be no payout. For instance, on one event, Karlsson defined {that a} payout had not occurred as a result of releasing a lot cash unexpectedly might trigger a destructive impact on monetary methods all through the world. Karlsson additionally falsely represented that EMS was working with the U.S. Securities and Trade Fee to organize the way in which for a payout.
Karlsson directed his victims to make investments utilizing digital currencies, comparable to Bitcoin. Karlsson admitted he defrauded at least 3,575 victims of greater than $16 million.
Karlsson faces a most sentence of 20 years in jail and a most $250,000 fantastic for the wire fraud and securities fraud expenses, and 20 years in jail and a $500,000 most fantastic for the cash laundering cost. As well as, the court docket additionally might order an extra time period of supervised launch, fines or different assessments, and restitution, if applicable. Nonetheless, any sentence following conviction can be imposed by the court docket solely after consideration of the U.S. Sentencing Pointers and the federal statute governing the imposition of a sentence.
Appearing Assistant Lawyer Common Nicholas L. McQuaid of the Justice Division’s Felony Division; Appearing U.S. Lawyer Stephanie Hinds of the Northern District of California; and Particular Agent in Cost Kelly R. Jackson of the IRS Felony Investigation (IRS-CI) Washington, D.C. Subject Workplace made the announcement.
Trial Lawyer Catherine Alden Pelker of the Felony Division’s Pc Crime and Mental Property Part and Assistant U.S. Lawyer William Frentzen are prosecuting this case. Assistant U.S. Lawyer Karen Beausey of the Asset Forfeiture Unit of the U.S. Lawyer’s Workplace is prosecuting the forfeiture proceedings.
IRS-CI Washington, D.C. Cyber Crimes Unit investigated the case. The Justice Division’s Workplace of Worldwide Affairs, the FBI Authorized Attaché Workplace in Thailand, the IRS-CI Attaché Workplace in Hong Kong and the Royal Thai Police Crime Suppression Division supplied important help.
