Daily fraud update: 8th November

Pittsburgh man convicted over wire fraud claims

A man from the US city of Pittsburgh has been convicted of committing five counts of wire fraud against a foreign exchange provider.

Frederick Banks, who is 52 years old, was told by a jury this week that he was being convicted of the five counts as well as an additional one of aggravated identity theft.

He stood accused of carrying out the crimes against a firm simply called Forex.

It was claimed that he tried to fraudulently take $264,000 from the company over the course of a month or so in 2013.

It is understood that he provided fake application information to Forex when he attempted to join.

His aim, prosecutors alleged, was to move Forex’s cash into his own account.

He also allegedly used identity documents from a past friend to get the account.

According to local press reports from Pittsburgh, which is located in the state of Pennsylvania, Banks has claimed that his thoughts are controlled by the Central Intelligence Agency (CIA).

Founder of token told he could face jail

The founder of a digital token known as IGOBIT has been told that he could be sent to prison for two decades in the event that he is found guilty.

Asa Saint Clair has been accused of running a fraudulent scheme related to IGOBIT, and of taking cash from investors.

He is accused of making false representations to investors with regard to their investments in his scheme.

This was alleged to have taken place over the course of two years from 2017 until very recently.

He is accused of failing to pay investors in IGOBIT the tokens he said they would receive.

He is also accused of presenting himself as the president of a scheme called the World Sports Alliance, affiliated to the United Nations.

However, no such scheme exists.

According to Geoffrey Berman, who serves as a US government attorney in Manhattan, the affiliate was a “sham”.

“As alleged, Asa Saint Clair used World Sports Alliance, a sham affiliate of the United Nations, as a vehicle to defraud lenders”, he is quoted as saying.

“Saint Clair allegedly defrauded investors in IGOBIT, a digital currency he claimed WSA was developing, but which turned out to be the fraudulent bait with which to lure victim investors.”

In addition, Peter Fitzhugh – who is the Special Agent-in-Charge on the case – accused Saint Clair of leading a “lavish” lifestyle on the back of the scheme.

“Saint Clair allegedly touted his company as promoting the values of sports and peace for a better world, yet defrauded all those who invested in his sham company”, Fitzhugh said.

“As alleged, Saint Clair used the money he earned through deceit to fund a lavish lifestyle for him and his family.”

If he is found guilty, Saint Clair could be sent to prison for 20 years.

Chris Lee

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