The CFTC has secured a $571 million greenback judgment towards Management Finance CEO Benjamin Reynolds.
There’s only one drawback… Benjamin Reynolds doesn’t exist.
Management Finance was a Ponzi scheme launched in 2017. It was headed up by the man on the correct, a Russian actor taking part in “Benjamin Reynolds”.
We’ve had a spate of Russian Boris CEO Ponzi schemes collapse currently; Wiseling and Beurax come to thoughts.
Whereas I’m not anticipating any regulatory motion to return of these, the CFTC stunned us by going after Management Finance in June 2019.
Unable to serve Reynolds in individual (as a result of he didn’t exist), the CFTC obtained permission to government service through publication.
Regardless of the regulator’s finest intentions, they quickly found Management Finance’s UK incorporation knowledge was bogus.
This ultimately result in the CFTC abandoning its case towards Management Finance altogether in April 2020.
Having absolutely realized they had been chasing a regulatory black gap into Russia at this level, it was assumed the case towards Benjamin Reynolds would even be dropped.
Not so. The CFTC persevered with a request for an Entry of Default towards Reynolds.
That was granted, after which the CFTC filed for default judgment.
Default judgment towards Reynolds was granted on March 2nd, 2021.
The courtroom accepted the CFTC’s fraud allegations as truth, discovering;
In the course of the Related Interval, Reynolds and Management-Finance finally solicited and misappropriated a minimum of 22,190.542 Bitcoin, valued at roughly $143,000,000, from greater than 1,000 prospects worldwide, together with a minimum of 169 who reside inside the USA.
Reynolds … misappropriated prospects’ Bitcoin by way of 1000’s of circuitous blockchain transactions.
Because of this, Management-Finance’s prospects have misplaced most if not all of their invested funds.
Simply to drive residence how profitable Management Finance was as a Ponzi, having taken in $143 million, the scammers behind it solely paid out $13,411.17.
For sure Benjamin Reynolds and the Russians behind Management Finance haven’t been seen since its September 2017 collapse.
Right here we’re two and a half years later, and the CFTC has secured a everlasting injunction towards a person who doesn’t exist.
Alongside the injunction Reynolds has been ordered to pay $142.9 million in restitution, plus a $429 million penalty.
In mild of Reynolds not current, all of this reads like a whole joke. But the courtroom order is actual and reads like another judgement.
Reynolds, who once more doesn’t exist, has been directed to pay an appointed Monitor.
The Monitor shall present the Fee at the start of every calendar 12 months with a report detailing the disbursement of funds to Defendant’s prospects in the course of the earlier 12 months.
The Monitor shall transmit this report below a canopy letter that identifies the identify and docket variety of this continuing to the Chief Monetary Officer, Commodity Futures Buying and selling Fee.
So uh yeah. The CFTC thinks unidentified scammers in Russia are going at hand over over half a billion.
Yeah no worries guys, I’m certain the test’s within the mail.
The default judgment towards Reynolds is last and brings the CFTC’s case towards Management Finance to an finish.
Pending any sudden updates this brings BehindMLM’s protection of the Management Finance fraud case to an in depth.
Anybody up for explaining this colossal waste of regulatory and judicial sources?
Replace twenty fifth March 2021 – Management Finance CEO Benjamin Reynolds has been outed as Estonian resident Karl-Joonatan Mets.