| 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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