Yahoo News 'Notorious and elaborate Ponzi scheme' fraudster arrested after swindling £550m from investors
A fraudster has been arrested for his involvement in an international investment scam. The senior member of the scam company appeared in Westminster Magistrates' Court after swindling £550m from investors.
The 42-year-old worked for 'JuicyFields', which the National Crime Agency (NCA) called a "notorious and elaborate Ponzi scheme". Ponzi schemes generate returns by using the money from new investors to pay earlier investors and collapse when there aren't enough new investors to sustain the payouts.
From early 2020 to 2022, more than 500,000 individuals across dozens of countries were registered to JuicyFields websites and offered investment opportunities in the cultivation, harvesting and distribution of medicinal cannabis. Over 180,000 investors transferred funds.
A massive £550 million is thought to have been invested, though unreported damages could bring that sum far higher. In July 2022, the organisers of the scheme abruptly removed company profiles from social media networks and blocked users' logins.
A large number of reports across Europe led to a joint investigation across the continent. On April 11, 2024, nine people were arrested and over 30 houses were searched.
Over the course of the investigation, several millions of Euros in crypto assets and bank accounts have been frozen. Real estate properties, vehicles, artwork, cash and various luxury items have been seized, in addition to a large number of electronic devices and documents.
A 42-year-old man in Atherstone, Warwickshire was arrested. He was responsible for paying salaries to staff members and helped to legitimise the company by attending industry events.
Police seized a number of electronic devices to be analysed. He appeared at Westminster Magistrates’ Court on Thursday, April 11 for the commencement of extradition proceedings.
Tom Barford, NCA Branch Commander, said: “Criminals like those behind JuicyFields are highly adept at identifying new and more sophisticated ways to target victims. In this case, individuals across the world were lured by the promise of high returns with little or no risk, and then faced with devastating losses.
“The NCA is one of many partners who joined German, French and Spanish authorities to take joint action, showing what we can achieve when we come together to tackle serious and organised crime.”
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