Three indicted in Maryland for Ponzi by Federal Jury

Denni Jali and his co-conspirators would then go ahead to defraud their investors to the tune of $28 million.

By · Sep 1, 2020 . 5min read

Ponzi Scheme in Maryland

A Federal Jury in the state of Maryland, United States indicts three men who posed as pastors but defrauded members floating investments which prosecutors classified as Ponzi.

Denni Jali, a South African citizen alongside Arley Ray Johnson and John Erasmus Frimpong both Maryland residents are those indicted. According to an indictment document unsealed last week, the trio persuaded people to invest in a cryptocurrency and foreign-exchange trading fund they ran. They, instead of investing these proceeds, went ahead to blow it off in their flamboyant lifestyles.

As the indictment states, the three men marketed their investment firm as 1st Million offering wealth management and financial literacy services. 1st Million attracted investors by hosting events at expensive venues and attending church-sponsored events.

Denni Jali and his co-conspirators would then go ahead to defraud their investors to the tune of $28 million.

According to a DOJ press release, the Federal Jury arrested Frimpong in Maryland for Ponzi related charges. Even though Jali left the United States in May 2019, he was later arrested in South Africa. The Department of Justice states it’s working towards bringing Jali to justice in the United States

Apparently, 1st Million allegedly offered contracts guaranteeing investors monthly rates of return ranging from 6% to 35% of their investments. Clearly, this was “regardless of market volatility,” according to the indictment.

The Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission have added to the Federal agencies levying charges against the trio.

The DOJ and its federal agencies frown at Ponzi investments and would waste no time in clamping down on them. It also vows to go after those who would instead use cryptocurrencies to perpetrate illicit and terrorism-related offences.

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