Swede admits to running multi million dollar investment fraud from a villa on Koh Chang

[rooster59]

Swede admits to running multi million dollar investment fraud from a villa on Koh Chang

 

Image: Karlsson being arrested in Koh Chang in June 2019. Manager Online

 

A Swedish man who was charged with running a multi million dollar investment fraud from a villa on Koh Chang has pleaded guilty in a US federal court.

 

Roger Nils-Jonas Karlsson, 47, was arrested at his home on the popular Thai island in June 2019 and extradited to the United States.

 

This week, Karlsson pleaded guilty to securities fraud, wire fraud, and money laundering charges. In total he defrauded more than 3,500 victims of more than $16 million.

 

Prosecutors in the United States describe a long-running scheme by which Karlsson and his company, Eastern Metal Securities (EMS) used a website to commit wire fraud against thousands of victims.  

 

He used several aliases including Steve Heyden, Euclid Deodoris, Joshua Millard, Lars Georgsson, Paramon Larasoft, and Kenth Westerberg to carry out the fraud, prosecutors said. 

 

From November 27, 2012 to June 19, 2019, Karlsson and EMS used www.easternmetalsecurities.com to make fraudulent representations and convince victims to send funds using a virtual currency exchange.  

 

During the same period, Karlsson and EMS used deceptive “devices and contrivances” to sell securities and then tried to conceal the proceeds of the wire fraud and securities fraud.

 

According to the U.S. Attorney’s Office, Karlsson admitted that he used the website to invite potential investors to purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000.  

 

Karlsson advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97% of the amount they invested. Karlsson admitted he had no way to pay off the investors.  Instead, the funds provided by victims were transferred to Karlsson’s personal bank accounts and he then used proceeds to purchase expensive homes and a resort in Thailand, understood to be the Elysium Resort on Koh Chang. 

 

 

 

Karlsson also used a second website, www.hci25.com, to make multiple false communications to potential investors.  Karlsson brought the investors in HCI25 together with the investors in the “Pre Funded Reversed Pension Plan” and posted multiple communications to delay the moment investors would realize there would be no payout.

 

For example, on one occasion, Karlsson explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world.  Karlsson also falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.

 

Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin.  Karlsson admitted he defrauded no less than 3,575 victims of more than $16 million. 

 

Karlsson faces a maximum sentence of 20 years in prison and a maximum $250,000 fine for the wire fraud and securities fraud charges, and 20 years in prison and a $500,000 maximum fine for the money laundering charge.
 

-- © Copyright Thai Visa News 2021-03-07

 

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[ThailandRyan]

Crooked as can be. What a truly wonderfully piece of garbage this man is. He should be stoned to death with each of his victims getting a shot in.

[polpott]

33 minutes ago, ThailandRyan said:

Crooked as can be. What a truly wonderfully piece of garbage this man is. He should be stoned to death with each of his victims getting a shot in.

The investors are equally to blame. Greed conquers brains.

[Enzian]

5 minutes ago, polpott said:

The investors are equally to blame. Greed conquers brains.

Yes, and who falls for things like this? A long time ago I received a windfall and thought about dumping it into a Vanguard All-US or All-World, but wasn't sure I could trust that, so it ended up in real estate. Call me conservative. 

And is it really so easy as it sounds for guys like him to do this? I  guess he needed some knowledge of the world of finance , but still...

[Mr Meeseeks]

A similar fate will no doubt await those scammers on Koh Phangan who just stole over $3m from investors in their cryptocurrency project.

[Yellowtail]

It was fun while it lasted...

[polpott]

1 minute ago, Enzian said:

Call me conservative. 

And is it really so easy as it sounds for guys like him to do this? I  guess he needed some knowledge of the world of finance , but still...

I call you prudent. 2 golden rules when looking at investments. "If it sounds too good to be true, it probably is" and "due dilligence". Also a rule that greed is inversely proportional to brains. People like the Swede prey on this and seek out people who show an undue amount of greed and a deficit of brains.

 

A few times in my life, people have tried to tempt me with this type of investment, even a close family member. I have never succumbed to them and over time have always been proved right. The most recent was a sheme doing the round in my moo bahn, run by an assistant bank manager, promising amazing, guaranteed returns on your investment, as reported in TV. One of my neighbours invested 2 million baht, all of their life savings, and came round to pursuade me to invest. I sent her away with a flea in her ear. The assistant manager is now under arrest and awaiting trial, my neighbour doesn't hold out much hope of seeing any of her 2 million baht again. She has long been known as a particularly greedy person and not at the front of the queue when brains were handed out.

[NCC1701A]

"Goodbye Bernie Madoff mini me. Sorry we could not make deal with you but we have to give USA man somebody just to look good." 

 

[Mr Derek]

Yawn. Anyone with money to invest has got money they can afford to lose.

[4MyEgo]

1 hour ago, rooster59 said:

According to the U.S. Attorney’s Office, Karlsson admitted that he used the website to invite potential investors to purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000.  

 

That in itself should have been enough to raise alarm bells.

 

 

[polpott]

3 minutes ago, Mr Derek said:

Yawn. Anyone with money to invest has got money they can afford to lose.

Not true. Read my previous post. Old German guy with Alzheimer's who's wife had control of his money. He now has zero savings and unable to support his annual extension. Up <deleted> creek without a paddle.

[ezzra]

16 minutes ago, Mr Derek said:

Yawn. Anyone with money to invest has got money they can afford to lose.

Said the man who probably has neither...

[Whale]

And we wonder why the easier visa routes for long-stayers are getting more complex. 

[Bluespunk]

2 hours ago, rooster59 said:

According to the U.S. Attorney’s Office, Karlsson admitted that he used the website to invite potential investors to purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000.  

Ah huh...

[gunderhill]

2 hours ago, ThailandRyan said:

Crooked as can be. What a truly wonderfully piece of garbage this man is. He should be stoned to death with each of his victims getting a shot in.

I  only said that Halibut was  good  enough for Jehovah!

[Andy from Kent]

2 hours ago, ThailandRyan said:

Crooked as can be. What a truly wonderfully piece of garbage this man is. He should be stoned to death with each of his victims getting a shot in.

 

That's an understandably emotional reaction.   

 

Another option might be a total seizure of his assets used to pay for his decades in prison.

 

This must have been an appealing claim to those who let their greed block out any reason:

 

"According to the U.S. Attorney’s Office, Karlsson admitted that he used the website to invite potential investors to purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000." 

 

Who could at any time believe such a spurious claim?

 

 

[phyx1u5]

now time for the PAID network crypto guy to go down next

[peterdarby]

2 hours ago, polpott said:

…greed is inversely proportional to brains.

It seems so, but I always wonder how these people have so much money to invest, whereas me – brainy as heck, but no spare cash to put into harebrained get-rich-quick schemes.

[Ralf001]

A potential for 40 years in the pokey.

 

what if does not pay the fines, is he kept locked up until he does ?

[Mr Derek]

2 hours ago, ezzra said:

Said the man who probably has neither...

Money is for spending, not investing. The trick is to get the balance right between self-sacrifice (work) and self-indulgence (consumption). Those who work so hard as to make more money than they care to spend have no concept of the meaning of life. This guy was arguably doing society a valuable service, if only society knew it.

[Lionrock2312]

so glad that I can come here for expert financial advice 

[realfunster]

2 hours ago, Enzian said:

A long time ago I received a windfall and thought about dumping it into a Vanguard All-US or All-World, but wasn't sure I could trust that, so it ended up in real estate. Call me conservative.

Unlike the earlier contributor, I will call you conservative !????

 

I don’t see why you would be worried about Vanguard ETFs. Vanguard (and several others like it) is a highly credible and trusted investment fund company.

 

You’ll likely still do quite nicely out of real estate but seems a shame to be blocking off investment options in other areas because of an unnecessarily cautious approach. 

Through ETFs you can invest in pretty much anything, obviously stock but also stock themes, specific stock industry sectors, indexes, geographies, commodities, real estate trusts and crypto etc.

 

Ironically, you are possibly increasing your own ‘portfolio/investment risk’ if you are heavily over weighted in real estate. Stocks/bonds/others might give you some nice investment diversification. 

 

Anyway - good luck with the investing ! 

 

 

 

 

[ThailandRyan]

1 hour ago, Andy from Kent said:

 

That's an understandably emotional reaction.   

 

Another option might be a total seizure of his assets used to pay for his decades in prison.

 

This must have been an appealing claim to those who let their greed block out any reason:

 

"According to the U.S. Attorney’s Office, Karlsson admitted that he used the website to invite potential investors to purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000." 

 

Who could at any time believe such a spurious claim?

 

 

Not emotional just biblical proportions of fraud he committed so it should be returned in biblical fashion I do believe.

[roquefort]

24 minutes ago, Mr Derek said:

Money is for spending, not investing. The trick is to get the balance right between self-sacrifice (work) and self-indulgence (consumption). Those who work so hard as to make more money than they care to spend have no concept of the meaning of life. This guy was arguably doing society a valuable service, if only society knew it.

I hope you'll think the same when you can no longer work and have nothing to fall back on. The meaning of life changes when you have no money.

[shy coconut]

3 hours ago, polpott said:

Not true. Read my previous post. Old German guy with Alzheimer's who's wife had control of his money. He now has zero savings and unable to support his annual extension. Up <deleted> creek without a paddle.

I find it hard to have sympathy with anyone acquainted with someone with your user name.

[RichardColeman]

3 hours ago, Mr Derek said:

Yawn. Anyone with money to invest has got money they can afford to lose.

Think i'd amend that to dont invest in anything you cant live in, see, or hold in your hands 

[djayz]

5 hours ago, rooster59 said:

purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000.

Where do I sign up?!?! I'll buy a few shares and make a killing!

[djayz]

1 hour ago, peterdarby said:

how these people have so much money to invest

Probably borrowed. Easy come, easy go as they say. 

[Yellowtail]

50 minutes ago, roquefort said:

I hope you'll think the same when you can no longer work and have nothing to fall back on. The meaning of life changes when you have no money.

 

That's what the public teat is for. All the suckers that saved their money will be paying for him...

[Thujone]

According to the U.S. Attorney’s Office, Karlsson admitted that he used the website to invite potential investors to purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000.  

 

If those figures aren't a red flag, I don't know what is.

I'd have asked him if I could invest $10 for $4,500 worth of gold, just to test the idea out.