Two Crypto Promoters Plead Guilty in $8.4M Forcount Ponzi Scheme: Wire Fraud Conspiracy Unveiled

In the volatile world of cryptocurrency, promises of quick riches can often lead to devastating losses. The latest example? The Forcount Ponzi scheme, which defrauded primarily Spanish-speaking investors out of a staggering $8.4 million. Now, two key players are facing the music.

Forcount Crypto Scheme: Promoters Admit Guilt

Nestor Nunez and Antonia Perez Hernandez, two individuals who actively promoted the now-infamous Forcount scheme, have pleaded guilty to conspiracy to commit wire fraud. This admission of guilt, made in a New York court on Monday, marks a significant step in holding those accountable for this elaborate crypto scam.

Two individuals pleaded guilty today to conspiracy to commit wire fraud in connection with their participation in a cryptocurrency-based investment scheme that defrauded investors of approximately $8.4 million.

Read more: https://t.co/j74tL5Qz1t

— US Attorney SDNY (@SDNYnews) July 29, 2024

According to official reports from the United States Attorney for the Southern District of New York, Nunez and Hernandez were instrumental in a scheme that preyed on investors, primarily within the Spanish-speaking community. Between 2017 and 2021, these individuals allegedly lured unsuspecting victims into a web of deceit, promising unrealistic returns on their crypto investments.

The Face and the Mastermind: Unmasking the Forcount Fraud

The scheme’s complexity involved layers of deception. Nestor Nunez, an actor by profession, played a key role by impersonating the fictitious CEO of Forcount, a character named “Salvador Molina.” Imagine the audacity – creating a fake persona to build trust and confidence in a fraudulent investment! Nunez was apprehended in Spain in December of the previous year, highlighting the international reach of these scams and the collaborative efforts to bring perpetrators to justice.

But who was pulling the strings behind the curtain? The real architect of this crypto Ponzi scheme was identified as Brazilian national Francisley Da Silva. Da Silva allegedly orchestrated the entire operation, using Nunez as a front man to shield himself from direct scrutiny. Victims’ funds, instead of being invested as promised, were reportedly siphoned off to fuel lavish lifestyles, funding luxury goods, real estate, and high-end vehicles for Da Silva and his associates.

What Promises Did Forcount Make to Investors?

Let’s delve into the deceptive tactics used by Forcount to entice investors. The United States Securities and Exchange Commission (SEC) shed light on Forcount’s operations in a December 2022 press release. Forcount Trading Systems purportedly offered various membership deals centered around crypto trading and mining programs. The core of their fraudulent pitch revolved around these enticing, yet ultimately false, promises:

• Guaranteed Daily Returns: Investors were promised daily returns on their investments, a classic red flag for Ponzi schemes. Legitimate investments rarely, if ever, guarantee daily profits.
• Doubling Investments in Six Months: Forcount went a step further, assuring investors that their initial investments would double within a mere six months. Such astronomical returns are simply unsustainable and should raise immediate suspicion.

The reality, as revealed by the US Attorney’s Office for the Southern District of New York, was far from the rosy picture painted by Forcount:

“In reality, Forcount was not engaging in cryptocurrency trading or mining, and the founder and promoters of the scheme were using Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves,” the June press release stated unequivocally. This is the textbook definition of a Ponzi scheme – using new investors’ money to pay off earlier investors, creating a false sense of profitability and sustainability.

HSI Special Agent in Charge Ivan J. Arvelo aptly summarized the deceptive allure of Forcount:

“With high-end clothes and cars, these individuals are alleged to have presented a life of luxury to potential investors, but instead of a lucrative investment opportunity, the victims were fleeced of their savings and left with nothing to show for it,” Arvelo stated. The perpetrators used the age-old tactic of showcasing wealth to project success and credibility, masking the underlying fraudulent nature of their operation.

Crackdown on Crypto Fraud: Are More Cases on the Horizon?

Nunez and Hernandez are not the only individuals facing legal repercussions in connection with the Forcount scheme. In June, Juan Tacuri, identified as a senior promoter, also pleaded guilty to conspiracy to commit wire fraud. This indicates a wider network of individuals involved in perpetuating this scam, and potentially more guilty pleas or convictions could follow.

The tactics employed by Tacuri and other Forcount promoters reveal a calculated approach to targeting potential victims. They would travel across the U.S., pitching their scheme at:

• Lavish Expos: Large-scale events designed to attract a wide audience and create an air of legitimacy.
• Small Community Presentations: Targeting specific communities, in this case, the Spanish-speaking community, to build trust and exploit existing social networks.

The press release further detailed Tacuri’s methods:

“During larger-scale events, Tacuri would present Forcount’s investment products and compensation plan, encourage Victims to invest as a means of achieving financial freedom, and boast about the amount of money he was earning, including by wearing designer clothing to such events,” the statement explained. The events were intentionally designed to be festive and create excitement, fostering a sense of FOMO (fear of missing out) and pressuring individuals to invest quickly without proper due diligence.

The Forcount case is part of a broader trend of increased scrutiny and enforcement actions against cryptocurrency fraud by US prosecutors. The recent conviction of FTX founder Sam Bankman-Fried serves as a stark reminder that authorities are taking a hard stance against misconduct in the crypto space. This heightened regulatory environment signals a commitment to protecting investors and ensuring greater accountability within the burgeoning crypto industry.

What’s Next for the Guilty Promoters?

As of now, the length of prison sentences for Nunez and Perez Hernandez remains uncertain. However, their guilty pleas are a crucial step towards justice for the victims of the Forcount Ponzi scheme. This case serves as a cautionary tale, highlighting the risks associated with unregulated crypto investments and the importance of vigilance in the face of promises that seem too good to be true.

Key Takeaways:

• Be Skeptical of Guaranteed Returns: No legitimate investment can guarantee daily or excessively high returns.
• Do Your Due Diligence: Thoroughly research any investment opportunity before committing your funds. Verify the legitimacy of the company and its claims.
• Beware of High-Pressure Tactics: Scammers often use high-pressure sales tactics and create a sense of urgency to rush your decision-making.
• Seek Independent Financial Advice: Consult with a qualified financial advisor before making any investment decisions, especially in complex and volatile markets like cryptocurrency.

The Forcount saga underscores the critical need for investor education and robust regulatory frameworks within the crypto space. As the industry continues to evolve, staying informed and exercising caution are paramount to safeguarding your financial well-being.