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Ponzi Schemer Rhodes Plead Guilty In SDNY While OneCoin Exhibits Withheld

By Matthew Russell Lee, Patreon
Honduras - The Source - The Root - etc

SDNY COURTHOUSE, Jan 9 – While the guilty plea of  was announced by the SDNY US Attorney's Office, that Office has still not provided its exhibits on OneCoin, regarding which promotions continue around the world.

 From the January 9 announcement of the guilty plea of "JASON RHODES pled guilty today before U.S. District Judge Sidney H. Stein to securities fraud, wire fraud, investment adviser fraud, and conspiracy charges in connection with his participation in a scheme to defraud approximately 25 investors in Sentinel Growth Fund Management, LLC (“Sentinel”), a hedge fund RHODES co-founded, out of approximately $19.6 million by lying to the investors and using investor funds for his own personal use and to make repayments to earlier investors in a Ponzi-like manner.    According to the Indictment and other Court filings:  Beginning in at least 2013 and through in or about December 2016, RHODES, together with his co-conspirators, solicited investments in Sentinel by falsely representing to investors that their funds would be used for legitimate, specified investment purposes, namely purchasing securities.  In fact, RHODES failed to invest the investor monies as promised, but rather diverted investor funds to his own personal use and the personal use of his co-conspirators and, in a Ponzi-like manner, to make repayments to other investors who were demanding their money.  Among other things, RHODES diverted investor funds to a trucking business operated by RHODES and his wife; to pay more than $1 million to settle an unrelated civil lawsuit filed against RHODES and one of his co-conspirators; and on other personal expenses including a resort stay in Dubai and a luxury time-share vacation club.  Through this scheme, RHODES and his co-conspirators defrauded approximately 25 investors out of a total of approximately $19.6 million.  Among other fraudulent acts, RHODES and a co-conspirator falsified an account statement for an investor (“Investor-1”) to conceal the fact that RHODES and his co-conspirators had misappropriated most of the $4.2 million Investor-1 had invested in Sentinel.  After Investor-1 discovered the fraudulent nature of the account statement, RHODES, working with others, obtained funds from yet another investor (“Investor-2”) in order to make payments to Investor-1.  RHODES and his co-conspirators then, on multiple occasions, created fraudulent reports for Investor-2, falsely reflecting that Investor-2’s funds were invested with portfolio managers in Sentinel’s brokerage accounts and were earning returns.  In truth and in fact, and as RHODES well knew, Investor-2’s funds had been almost entirely misappropriated upon their receipt to repay Investor-1, and were not being managed by portfolio managers on Sentinel’s platform."

  Inner City Press exclusively covered before Judge Stein the sentencing of drivers and recruiters for a slip and fall fraud conspiracy in Brooklyn - but is still concerned with the OneCoin exhibits, for which it has had to file a FOIA request, still not fulfilled.


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