Tagged: fraud

Details on Ezubao P2P Platform Shutdown are Out: Ponzi Scheme with 95% of Projects Labeled Fake

Stop-Fraud-600

As reported in December, the Chinese peer to peer lender Ezubao (Ezubo), launched by Yucheng in 2014,  was shuttered by authorities as employees were questioned and managers were arrested by police.  Now Xinhua and other news outlets are providing details that are shaking up the… Read More

Potential Pitfalls of Regulation CF – Part II: Practical Concerns for Funding Portals

Look Out for Traps Charlie DeTar

As discussed in part one, the SEC’s final Regulation Crowdfunding rules require thorough analysis to not fall prey to potential traps. While I firmly believe that we can make crowdfunding work regardless of the roadblocks set forth, it does not mean that we can afford… Read More

SEC Calls for Entry of Default Against Bitcoin Miners Gaw Miner / ZenMiner

Punishment Stocks Crime

The Securities and Exchange Commission charged two Bitcoin mining companies for a Ponzi Scheme last month as part of an ongoing investigation into the activities of Homero Joshua Garza. Yesterday the SEC filed for an entry of default as  Garza apparently has not responded to… Read More

Chinese P2P Lender Ezubo Has 1.1 Billion Yuan Frozen by Authorities as Chairman is in Police Custody

China Yuan Renmibi

In a sign of a more vigilant approach by Chinese authorities regarding questionable peer to peer lending platforms, Ezubo (Ezubao) saw 1.1 billion yuan frozen by the government  and the Chairman, Din Ning along with other top executives were said to be in police custody according… Read More

SEC Charges Two Bitcoin Mining Companies for Ponzi Scheme

Punishment Stocks Crime

The SEC filed charges against two Bitcoin mining operations last week accusing the founder of launching a Ponzi scheme to defraud investors lured in by get rich quick claims. Homero Joshua Garza operated two Bitcoin companies, GAW Miners and ZenMiner.  The Connecticut-based scam paid early… Read More

The First Investment Crowdfunding Fraud. What Does this Mean for the Industry?

Ascenergy Fraud

During the buildup to the Securities and Exchange Commission’s announcement regarding the final rules on Title III retail crowdfunding, the Commission filed a fraud case in the US District Court of Nevada.  The SEC accused Ascenergy, a company ostensibly in the oil and gas industry,… Read More

Largest UK Kickstarter Campaign Ever Zano Goes Bust. Begins Creditors’ Voluntary Liquidation

Zano Change Org Petition

  Back in December 2014, British company Torquing Group took to Kickstarter with a mission to raise funds for its new nano “smart” drone, Zano. The project was met with backer enthusiasm and excitement as it secured a grand total of £2,335,119 ($3,550,665.20 USD). The Zano… Read More

SEC: Jammin’ Java – Marley Coffee Entangled in Pump & Dump Fraud

Coffee Cup

The SEC has filed fraud charges against alleged perpetrators of a $78 million pump & dump scheme involving shares of Marley Coffee.  The company, Jammin Java, was marketed using the trademarks of reggae performer Bob Marley. In a release by the SEC, officials stated that… Read More

Women Pleads Guilty on Boston Marathon Scam. Used GoFundMe to Raise Donations

Joanna Leigh

Joanna Leigh from Boston has admitted to scamming almost $40,000 following the wake of the Boston Marathon Bombing tragedy. Leigh pleaded guilty to all charges after previously denying she had committed fraud.  Leigh took money from a variety of sources including the One Fund Boston,… Read More

Scottish Trader Uses Bogus Twitter Accounts to Tank Shares. SEC Hunts Him Down

Bloodhounds Hunt Twitter

The Securities and Exchange Commission has filed charges against alleged rogue trader James Alan Craig of Dunragit, Scotland.  Apparently Craig was a bit cocky too, as he tweeted that the SEC would not be able to track him down.  The SEC has used their own Twitter… Read More

SEC Calls Fraud on Ascenergy Oil & Gas Crowdfunding Scheme

SEC Division of Enforcement

Lost in all of the excitement of last weeks’ announcement from the SEC on Title III crowdfunding rules was a case of crowdfunding fraud.  According to the Securities and Exchange Commission, the agency halted a “fraudulent oil and gas crowdfunding scheme”.  The SEC has frozen… Read More

US Treasury Publishes Suspicious Activity Report Highlighting Crowdfunding Scams & Frauds

Danger Warning

The US Department of Treasury, via its FinCen or Financial Crimes Enforcement Network, is ringing warning bells when it comes to rewards based crowdfunding. FinCen notes a rise in “suspicious activity reports” (SARs). In a report published this past week, FinCen spotlighted rewards based crowdfunding… Read More

Louise Beaumont Provides Perspective on TrustBuddy Collapse

Louise Beaumont

Scandalous news hit the peer to peer lending world this week as TrustBuddy revealed allegations of serious misconduct.  The malfeasance was deemed so severe that Swedish authorities immediately shut down the direct lending operation and Swedish Police were contacted to investigate if criminal activity has… Read More

TrustBuddy Loses Trust. Peer to Peer Platform Closes Following “Suspected Misconduct”, Swedish Police Contacted

Unhappy TrustBuddy

In an unsettling about face TrustBuddy, a peer to peer lending platform based in Stockholm, has shut down.  The home page has transitioned from lending platform into a public statement (republished below) in both Swedish and English explaining a series of alleged misconduct; “An investigation… Read More

Attorney General: “Washington State Will Not Tolerate Crowdfunding Theft”

Asylum Cards Judgement

Back in May of 2014, Crowdfund Insider reported on the first state Attorney General to file suit against a rewards based crowdfunding campaign that had failed to deliver on its crowdfunding promise. This was no big, multi-million dollar crowdfunding project either. It was for a… Read More

Indiegogo’s Slava Rubin: “We Believe Everyone Deserves One Opportunity to See Whether or Not the World or the Crowd Wants to Fund Them”

Slava Rubin, Danae Ringelmann and Eric Schell

As more and more companies are turning to crowdfunding for extra funds, Indiegogo’s CEO Slava Rubin is encouraging everyone with a project idea to use the global platform. During a recent interview with MarketWatch, Rubin stated that he, along with the rest of the Indiegogo crew,… Read More

Brief: Big Data is China’s New Tool Against Illegal Fundraising

big data word cloud

China’s crowdfunding and peer-to-peer lending markets have frequently featured in the news, as China seeks to decrease fraud in its rapidly expanding Internet finance world. Now, Beijing’s financial supervision agencies are using big data to crack down on illegal fundraising, with an online pre-warning platform already… Read More

Gregg Mulholland, Previously Charged by SEC for Pump & Dump Scheme Involving Rudy Ruettiger, is Charged with Illegally Selling Penny Stock Shares

fraud

The SEC has charged Gregg R. Mulholland of secretly accumulating “at least” 84% of shares in Vision Plasma Systems.  Once Mulholland effectively controlled the company, he liquidated shares for proceeds of approximately $21 million.  The SEC states that no registration statement was filed on the… Read More

Fraudulent €7000 Pledge Ruins Kickstarter Success For Netherlands Video Game Dimension Drive

almostfundedkickstarter

Last month, Netherlands-based studio 2Awesome Studio took to famous crowdfunding platform Kickstarter with a mission to raise €30,000 for its new video game Dimension Drive.  The game was described as comic book-styled space adventure set in a multidimensional universe. It features a teleportation mechanic that allows you to fight on two… Read More