The Federal Public Prosecutor’s Office (MPF) filed a complaint against a scheme promoted by scammers operating in the cryptocurrency and forex market in four Brazilian states.
A total of eight businessmen are among those suspected of running the investment companies. None of them had permission from the Central Bank of Brazil or the Securities Commission.
Yet they acted on the promises of guaranteed profits to customers. As of October 2022, one of the companies surveyed, Lotus Business Center, has stopped withdrawing customers.
MPF denounces eight scammers who worked with cryptocurrencies, forex and other fake investments
According to the MPF, the Special Action Group to Combat Organized Crime (Gaeco) has determined that the criminal group has moved millions of reais.
The action of the group already charged in the Federal Court was centered in the states of Amazonas, Pará, Rio Grande do Norte and Roraima, in Brazil’s northern region.
The eight suspected businessmen operated Amazon Bank, Group Lotus Corporate and Lotus Business Center. In doing so, they imprisoned clients for an alleged investment advice, which turned out to be fraudulent and led people to losses.
The main victims of the scheme were civil servants, who were eventually encouraged to take out wage credits from their banks to invest in the schemes. Fundraising took place via the internet, on pages managed by the entrepreneurs.
It is noteworthy that the scammers targeted by the MPF complaint offered investments in cryptocurrencies, forex, binary options, using the IQ Option platform in the latter. In addition, HFT activities were included in the portfolio offered to clients.
In a note, the Public Prosecutor’s Office of Communications stated that the amounts invested had passed through the accounts of the eight accused businessmen. Thus they enjoyed a luxurious life at the expense of their customers.
“After the clients had contributed the values to the group companies, a significant portion of the money was earmarked for personal accounts of the eight involved in the scheme, including through front company accounts, and another portion was earmarked to return link the criminal plan. With the values, the members of the scheme enjoyed a luxurious life, which is constantly published on the internet as a way to enhance the image of professional success as bank owners and investors in the financial market.”
Amazonas federal court will determine whether businessmen are guilty
Despite the MPF’s complaint, would-be coup plotters accused of crimes are still presumed innocent. Amazonas 2nd Court of Justice is analyzing the process.
In any case, Gaeco calls for the suspects to be convicted of various crimes. Among them operating a financial institution without a license, offering securities without a CVM license, fraudulent management of a financial institution, illegal earnings through fraud, the exercise of unauthorized investment advice and finally criminal organization.
Amazon Bank registers some customer complaints in Advertising Aqui. But the Lotus Business Corporate page has more than 110 investor complaints accusing the company of fraud, with withdrawals blocked since October 2022.
The MPF has not released the names of the businessmen under investigation, but the space remains open for demonstrations.
- Would you like to submit a complaint? Send Livecoins your complaint by email [email protected].
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.