Mark Scott’s OneCoin trial is happening over the subsequent few weeks.
The spotlight of proceedings to this point has been Ruja Ignatova’s brother, Konstantin Ignatov, trotted out as a cooperating witness.
Ignatov’s testimony, yesterday specifically, has supplied us with a couple of attention-grabbing bombshells.
As is more likely to be the case all through Mark Scott’s felony trial proceedings, our protection depends closely on Inside Metropolis Press reporting. Matthew Russel Lee is attending the trial in individual and supplies stay updates on Inside Metropolis Press’ Twitter account.
Maybe the most important bombshell to return out of Konstantin’s testimony to this point, aside from his cooperation with the DOJ, is the revelation he has plead responsible.
Earlier this yr Konstantin was charged with conspiracy to commit wire fraud, which he pleaded not responsible to in Might.
As revealed by the DOJ’s questioning of Konstantin, that plea has since been modified to responsible.
Accompanying that change of plea is a “cooperation settlement”, the small print of which have but to be made public.
Konstantin said he began cooperating with the federal government “months after” his arrest.
In no specific order, listed below are the remainder of the bombshells dropped throughout Konstantin’s testimony.
Konstantin (and presumably different OneCoin insiders) claims he lived in concern of OneCoin buyers.
Guarantees weren’t stored. I began getting loss of life threats on the cellphone.
Recounts Ignatov of 1 specific incident,
Somebody put a gun in my again and I used to be put in a mini van. I used to be taken to suburbs of Sophia.
Then there was the time I used to be confronted by members of the Hell’s Angels.
Konstantin attributes these incidents to investor dissatisfaction. The Ponzi facet of OneCoin collapsed in January 2017.
Konstantin additionally claims he “heard that bribes had been paid in Asia”. This has been a long-running theme in OneCoin, and a part of why the rip-off proliferated such that it did globally.
When questioned on why he lied to US customs authorities who detained him, Konstantin, for what I imagine is the primary time publicly, acknowledged that OneCoin was a fraudulent scheme.
I knew I used to be working for a fraud scheme and I didn’t need to get caught.
After that preliminary brush with the legislation, Konstantin remembers disposing of his laptop computer.
I put it in a trash again and threw it out in Las Vegas. However after I went to LAX to fly out, I received arrested by the FBI.
I noticed issues had been getting severe. I used to be afraid of going to jail.
After Ruja Ignatova disappeared, she gifted Konstantin with a home. That coincided with Konstantin’s taking on as “a frontrunner in OneCoin”.
Transferring onto the cash facet of issues, Konstantin revealed cash handed over by buyers was stashed in a secure on the third flooring of OneCoin’s Sofia workplace.
Ruja spent hundreds of thousands of investor funds on frequent purchasing journeys. In accordance with Konstantin, one jewelry merchandise bought by Ruja price over $1 million. Investor funds had been additionally spent on a home in Frankfurt for Ruja’s husband.
Ruja herself had mansions in Bulgaria and Dubai. For automobiles she received round in a Porshe and armoured Lexus.
She was all the time afraid somebody would kidnap her.
Ignatova additionally owned a yacht, which was ceaselessly used to host lavish events.
All in all Konstantin claims Ruja personally appropriated $500 million of OneCoin investor funds.
Sebastian Greenwood, Ruja’s second in command, “stole over $100 million”. Ruja apparently wasn’t comfortable about this, leading to Greenwood returning “numerous the cash”.
Amr Abdul Aziz additionally stole “over 100 million euros” via OneCoin. He’s since spent a great portion of that on race horses.
None of those thefts had been reported to coverage, as a result of everybody concerned knew “the cash got here from felony exercise”.
Transferring onto cash laundering, Konstantin claimed shell firms set as much as launder OneCoin funds had been “principally arrange” by Irina Dilkinska.
Dilkinska, together with these she labored with, had been reportedly known as “monkeys” by Konstantin and different OneCoin insiders.
After Ruja disappeared, Dilkinska started disassociating herself with OneCoin. Dilkinska can also be believed to have misappropriated OneCoin investor funds.
Ruja was having or making an attempt to have an affair with Gilbert Armenta.
Konstantin recognized Arments as Ruja’s boyfriend. She purportedly launched him to to Konsantin as an “worldwide cash launderer”.
Previous to Mark Scott’s first go to to OneCoin’s Sofia workplace, Ruja despatched everybody dwelling – together with Konstantin.
This, in accordance with Konstantin, was “not widespread”.
Scott had flown out to Bulgaria as a result of he felt “unsafe” discussing OneCoin associated enterprise with Ruja over Skype.
One other key determine in OneCoin’s cash laundering operations, as instructed by Konstantin, is Frank Schneider.
A part of these operations had been performed via the Financial institution of Eire, whose staff, after initially agreeing to testify, have backflipped and now outright refused to look earlier than the courtroom (in any capability).
Frank Schneider credited with warning Ruja of the FBI investigation into OneCoin.
Schneider is believed to have learnt of the FBI investigation after a wiretap on Armenta revealed he was working with the FBI.
Ruja purportedly had ordered the wiretap after she grew to become suspicious Armenta wouldn’t dump his spouse for her.
This seems to be a big supply of frustration for Ruja. In a single recorded dialog performed for the courtroom, Ruja instructed Armenta;
I by no means knew you had been such a spineless asshole… I don’t deserve this, and he or she doesn’t both. It’s not cool.
Upon studying of the Armenta’s cooperation with the FBI, Konstantin recalled
As her brother, I needed to understand how she was, why she was so frightened.
I went to her home and witnessed her having kind of a nervous breakdown.
She instructed me Armenta was giving her as much as the FBI.
Shortly after she realized of Armenta’s cooperation with the FBI;
Ruja stated she was very drained. She requested me to arrange conferences with every of the senior OneCoin individuals, at her home.
She met with them one after the other. I sat within the kitchen.
hen Ruja requested me to get her aircraft tickets to Vienna then Athens. She went to Athens and the safety guard along with her instructed me she was met by some individuals, who spoke Russian.
Earlier than Ruja departed her Bulgarian residence, she is believed to have set about “burning paperwork”.
Schnieder, together with Gilbert Armenta, Amr Aziz and Alex Ortega, are recognized as key figures in OneCoin’s cash laundering operations.
Having kicked off from this week, Mark Scott’s trial is predicted to take two to 3 weeks.
Scott’s attorneys have up to now offered him as “one of many individuals Ruja lied to”.