OneCoin received money laundering tip off from government official
Insight into how OneCoin seemingly manage to keep one step ahead of authorities has surfaced, courtesy of a District Court judgment in Germany.
The case involved a government tax official facing allegations he tipped off a friend about a money laundering investigation.
Back in September 2016 a OneCoin related €28,000 EUR transfer request to Singapore aroused the suspicion of a bank employee.
As reported by SWP DE, the employee noted, among other things, the “desolate financial position” of one of the OneCoin affiliates. Specific details were not elaborated on.
As required by the law, the bank in question acted on their employee’s suspicion and filed a Suspicious Activity Report with the authorities.
This prompted a money laundering investigation into the two OneCoin affiliates.
An employee working at the Ehingen tax office caught wind of the investigation.
This individual was also OneCoin affiliate and knew one of the men under investigation through the Ehingen group of OneCoin affiliates.
Upon learning of the investigation, the government employee informed one of the OneCoin affiliates under investigation.
This prompted the affiliate to rush to the bank and plead with employees that the funds be transferred to Singapore within 24 hours.
Ehingen prosecutors investigating the case eventually filed a lawsuit against the tax official, charging him with “breach of official secrecy”.
After initially denying any wrong-doing, the tax official later admitted what he did was wrong.
In his defense, the defendant said that he was sure that the case against his acquaintance would be closed.
“I know where the money came from,” said the (tax official) , who appeared in court without a lawyer.
He had even been there at the (OneCoin) promotional event for investment.
(At the event) his acquaintance received money from (OneCoin) investors.
The money had to go to Singapore at some point to give investors a bonus.
The tax official stated he tipped his friend off in an attempt to prevent the funds being frozen.
At the time OneCoin was amid a banking crisis. Banks across the world were terminating the Ponzi scheme’s accounts faster than they could set up new shell companies to open them with.
In an attempt to thwart authorities, OneCoin began using local affiliates as money laundering mules.
These mules collected newly invested funds and then laundered them offshore through personal bank accounts. In return, OneCoin rewarded its money mules with “a bonus”.
Germany’s top financial regulator, BaFin, would go on to ban OneCoin nationally in April, 2017. Three months earlier OneCoin collapsed and suspended affiliate ROI withdrawals.
As to the €28,000 EUR in stolen funds at question here, the case against the two men was eventually dropped (no details as to why).
As I understand it the funds were eventually laundered off to Singapore as intended.
The tax official defendant meanwhile was found guilty and ordered to pay a €5400 EUR fine.
Links to authorities and criminal organizations have dogged OneCoin and founder Ruja Ignatova for years.
I’ve come across alleged links with Bulgarian authorities, the Bulgarian and Russian mafias but up until now nothing concrete.
It’s worth noting that the reaction to the Bielefeld investigation, which saw OneCoin’s Bulgarian offices raided, was the premature announcement by Ignatova’s brother, Konstantin, that investigating authorities had “found nothing”.
That was back in March. Today the Bielefeld investigation continues and the three million in stolen investor funds authorities managed to seize remains frozen.
In the meantime, Konstantin’s claim certainly sounds a lot like the Ehingen tax official’s “(I was) sure that the case against (my) acquaintance would be closed” defense.
Regardless of its inaccuracy, one can only wonder where Konstantin got the notion authorities had found nothing from…
Another report about this trial:
NOLINK://schwaebische.de/landkreis/alb-donau-kreis/ehingen_artikel,-bekannten-vor-geheimen-ermittlungen-gewarnt-finanzbeamter-wird-verurteilt-_arid,10907427.html
I’m pretty sure we will have a bunch of OneCoin investors here in no time to argue that OneCoin has not collapsed.
@Otto:
I have to correct you. There are no OneCoin investors! There are only buyers of educational packages. 🙂
Ruja forbade to speak of “investments”. If someone claims to have invested in OneCoin, they must expect their capital to be frozen. In Germany, this warning has often been published.
5,400 euros?! Tipping off is a serious criminal offence potentially carrying an unlimited fine and up to 5 years in prison. This is repeatedly drummed into the head of everyone who works in financial services in the EU.
He abused his position at a government tax office to tip off a fellow member of a crime ring about an ongoing investigation into their fellow criminal’s money laundering activities.
Other than the relatively small amount of money involved, tipping off offences don’t really get any worse.
To get a piddling fine of €5,400 and no jail time the tax official must be singing like a canary.
Either that or the prosecutors were completely incompetent.
Or a separate prosecution against the official for the breach of the Money Laundering Act – on top of the lawsuit for “breach of official secrecy” – is in the pipeline.
@Melanie from Germany
Of course! Ruja’s M.O. is, “Do as I say, not as I do.”
In addition to numerous investment referencing By Ruja herself, one of which (the €225,000 package which gave a 14,000% ROI) last to OneLife YouTube channel being deleted for ponzi scamming promises, presumably (circa October/ November 2016), in this video the exiled former CEO/ Founder makes the contradictory claim of OneCon/ OneLie Network that, “We are not a Network Marketing company. We are in Financial Services Business.”
youtu.be/k5EP0g9foco
She goes on to suggest that her right-hand-men, Juha Parhiala and Kari Wahlroos, in the future, will make more money on the *coin (INVESTMENT) than they will have by recruiting their legion of down line victims.
Perhaps the reason the puppet figurehead bowed out exactly one year to the date of the presumed collapse-by-design-exit, is because of her strong character and self realization that she was “selling investments.”
Note: Some IMA’s are still missing their blockchain based Coin(un)Safe coins since at least May.
Also, with just 71 days remaining until the ICO/ “going Public” …maybe …and Customer Support responses as dependable as the sort stint of trading executions on the previous Xcoinx “Internal Exchange” fiasco (a 95% “transaction expired” result), there’s STILL no clarification on a OneCon mobile wallet (after 4 years), nor any of the aggressive touring and corporate/ technical speaking engagements and Team presence on the crypto/ blockchain Conventions circuit, the influx of podcast interviews and marketing pushes to raise awareness of the product, which you would obviously see in the cryptocurrency world prior to the culmination of such a milestone event and Public release. Lol.
So, in 4 years, and after having raised at least a few BILLION in globally embezzled victim’s funds, the company basically has 2 things to show for it:
1.) a $60,000 DealShitter platform
2.) and a COUPON
Pffft!
This so long promised ICO launch is the thing that keeps them going at this moment in Mexico and South America.
The promise of getting rich overnight still appeals to the mass of people joining these days there.
If and I say if this ICO will happen shouldn’t there be an indicator right now ? Or is it possible that this gets approved or dissaproved final last minute ? Just trying to understand the logics behind an ICO.
@Malthusian
I share your opinion that the sentence imposed has been far too small.
Theoretically, it would be possible for the employer – the tax office – to initiate disciplinary proceedings against the convicted person. Unfortunately, this is not experienced in the press, as it takes place internally.
If a German is tried and convicted for the first time, the penalty is usually low.
The punishment does not really deter, so many scammers continue as before. The German laws should be much sharper!
Mr. Duncan Arthur claimed in his blockbuster webinar (under 100 views on Youtube) that the exchanging from ONE to fiat won’t be a problem.
(youtu.be/-kUtrja21fs?t=19m16s)
Inability to exchange from ONE to fiat is the biggest practical problem for the scam. You can gullibly believe any fantasy about blockchains, magic algorithms or any other lie that the scammers feed you, but as long as the currency cannot be traded in open market, it doesn’t have any value from accountants perspective.
There is no basis on which to determine the “Fair value” of coins without open trading. No ethical accountat can take the “Ruja value” for granted.
On Igor’s forum one of the victims touched this problem:
(onecoin-debate.com/viewtopic.php?f=2&t=673&start=110)
Scandalously, Igor replied:
Some financial revolution we have here! ;-D
Theoretically it would be possible? Immediate dismissal for gross misconduct and an indefinite ban from working in financial services from the German financial regulator should be a given.
No wonder Ruja’s criminal career seems to have started in Germany (that business with the steel mill) if this is the attitude they take to financial crime.
Kari arrested in Finland? who will be next…
nolink//www.seiska.fi/Uutiset/Suomalainen-kohuliikemies-kaahasi-okyautolla-Virossa-joutui-viikoksi-putkaan/1133518
@Malthusian
I totally agree with you, but employees or civil servants enjoy some kind of special status.
We have a fitting saying: “One crow does not chop the other’s eye.” 🙁
In the private sector convicted offenders must expect harsh sanctions. But who works for the state can not be dismissed so easily. Officials are almost non-terminable.
Arrested for speeding, nothing to do with OneCoin or DagCoin unfortunately (other than the car having been purchased with stolen investor funds).
It seems October 8th “going public” will be pushed to 2019.
Konstantin introduced new Coin Offering and new OFC packages which start selling from September until January 2019. Surpise.
(Ozedit: YouTube vid removed)
In addition Konstantin reads from a document how OneCoin has a blockchain and haters should find something else to hate.
And members still can’t see even their own transactions from any blockchain. But hey, they have a blockchain, reads in some report, so the idiot members think all is good. XD
Sony Music striked the video WhistleBlowerFin linked to so I removed it.