With thousands of complaints lodged against investment company EmGoldex on social media, it was only a matter of time before government finally interfered.
Matapos mag-launch ng opisyal na imbestigasyon laban sa EmGoldex noong nakaraang taon, the Securities Division ng Massachusetts has officially filed civil fraud charges against the 4 founders of Emgoldex Team USA, namely Matthew Michael D’Agati, James Vincent Piemonte, Jonathan Herman Siegler, and Joseph Zingales.
EmGoldex, long accused of being a Ponzi scheme masquerading as an investment company, invites investers to buy 540 EUR worth of gold with the promise of a 3500 EUR return once subsequent investors could make their own sizeable investments into the company.
The state Securities Division’s administrative complaint alleges:
“EmGoldex is an illegal pyramid scheme disguised as a legitimate multi-level marketing company targeting investors both in Massachusetts and around the world. EmGoldex is purportedly registered in and maintains an administrative office in, the Seychelles, an island nation off the eastern coast of Africa.
While representing itself as an internet-based store specializing in the sale of gold, EmGoldex has no discernable retail sales activity and relies on new investor funds as its primary source of income.
The substantial returns promised by EmGoldex to investors are based exclusively on the recruitment of new investors into the pyramid scheme.”
Dito sa Pilipinas, naglabas na ang Securities and Exchange Commission (SEC) ng notice, warning the public against investing money in EmGoldex Philippines amid claims of the company’s huge returns for every investment made.
For more details on the civil fraud case against EmGoldex, go to this link.