An unbiased candidate for Governor of Tennessee is going through an eleven-count federal indictment for allegedly working a cryptocurrency Ponzi scheme that diverted greater than $1,900,000 in investor funds to himself and his household.
A federal grand jury alleges 47-year-old Misam M. Abidi solicited buyers of the cryptocurrency funding agency Star Credit score Holdings with claims of assured excessive returns, a reserve fund to guard principal and inflated representations of complete capital underneath administration.
Abidi allegedly supplied buyers with fictitious account statements and paid purported buying and selling income utilizing different buyers’ principal, which is the hallmark of a Ponzi construction.
The indictment additional alleges Abidi helped buyers take out loans to funnel further capital into Star Credit score Holdings and falsified at the least one affidavit claiming an investor’s identification had been stolen to acquire a mortgage. He additionally allegedly did not report earnings from the agency on his tax returns.
Says U.S. Lawyer D. Michael Dunavant,
“Ponzi schemes, cryptocurrency scams, and monetary fraud might be devastating to particular person buyers, dangerous to monetary establishments, and detrimental to the U.S. Treasury. We commend our federal company companions for his or her excellent investigation on this egregious case. Wherever fraud happens within the Western District of Tennessee, this workplace might be ready to carry offenders accountable.”
Abidi faces three counts of wire fraud with as much as 20 years every and three counts of cash laundering with as much as 10 years every, together with two counts of working an unlicensed cash transmitting enterprise and three counts of aiding in preparation of false tax returns.
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