Today’s financial world is always full of news pieces concerning whether or not the price of a given currency or stock will increase. Although these news pieces are what drive most of the decisions that traders make, there is also another segment of news that is very important to keep an eye on. The law side of finance.
The financial world is full of opportunistic people, who are ready to defraud people the moment they get the chance. Allegedly, this type of person was arrested in Park City Kansas, US this week. Thomas Lanzana, who was a former resident of New Jersey, is charged with allegedly defrauding as many as 20 people of $900,000 with a foreign currency Ponzi scheme.
Lanzana now resides in South Carolina, but his crimes look like to have followed him in his journey. The 51-year-old was charged with several counts of fraud, one for wire and the second for commodities. The US Department of Justice has documented the incident by quoting Lanzana, who claimed the investments to be successful financial instruments.
The same pattern could be seen in various other financial scams that have happened in the USA. All of the best currency brokers for US clients listed here have warned their customers to never trust an individual person who claims to be a very successful trader and offers his services for a “small fee”. The same case was with Lanzana who encouraged people to invest in an algorith-based trading pool in Forex, by claiming to be a highly successful trader himself.
According to the criminal complaint, Lanzana falsified pretty much every piece of documentation about his proceedings. Going as far as faking the tax documents alongside monthly account statements on the company website itself.
Just like any other Ponzi scheme, he misappropriated about $350,000 in order to satisfy older investors, so that they wouldn’t catch the smell of the scam too soon. The rest is believed to be used by him personally for his own benefit. It has been tracked to purchases on Amazon.com as well as a jewelry store and a luxury car dealer.
Despite how convincing these accusations may sound, it is required by law that Lanzana remains innocent until proven guilty. However, if he is proven guilty of both charges of mail fraud and commodities fraud, he may be facing a total of 30 years in prison and a fine of $1.25 million at the least and twice the amount of the gross gain from the fraud at the most.
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