Sunday, November 18, 2018

New cryptocurrencies - the pre-eminent Ponzi Scheme

Ponzi schemes all have the same basic features. Original suckers are lured in with the promise of getting rich quick. They get a payout funded by the contributions of later suckers. More people, seeing the impressive profits earned by the first, rush to get involved themselves. Eventually there aren't enough newcomers and the entire pyramid collapses.

The pattern with new crytocurrencies or 'tokens' is exactly the same.
A conman announces a new digital currency, piggybacking on the intense media hype around bitcoin. They pay a celebrity to endorse their 'initial coin offering' (ICO). The price of the new cryptocurrency spikes as people rush in and the founders cash out.

The fraudsters of Centra Tech used boxer Floyd Mayweather to promote their “centra token” in 2017. They were all arrested for securities fraud. Mayweather himself is now being sued by those who got fleeced.
An ICO itself is not illegal. Such schemes have raised billions. The problem is inherent. Cryptocurrencies are not a store of value due to their volatility. They are not a unit of account or a medium of exchange.

Digital tokens have none of the fundamental attributes of a currency.

Saturday, November 17, 2018

Cathinones - The Zombie Drug

Cathinones are a family of synthetics better known as bath salts or the zombie drug. Various street names have been applied such as krokodil and flakka.
It is a stimulant with severe psychoactive effects. The drug is hallucinogenic and causes panic and intense hysteria. Flakka can be smoked, inhaled, injected, swallowed, even vaped. Users exhibit demonic-like behavior and superhuman strength. Last year the U.S. had a flakka-related incident where a teenager stabbed a couple to death before eating the man’s face. It took four police to apprehend the youth. Users pose a serious danger to themselves and those around them.
Users recall feeling brain-dead and paralyzed. There are reports of people having sometimes fatal heart attacks and strokes. Cases of kidney damage, liver damage and psychosis are common.

The drug is extremely cheap and addictive. It can raise serotonin and dopamine which initially makes users feel good but that fades once the delayed effects take hold. The effects last between three to five hours.
See ----->'Monkey Dust' hits U.K. Streets - MDPHP
See ----->800 pounds of damiana leaves leads to bust - Zombie Drug

Omid Mashinchi pulls 2 years for International Money Laundering

Wolfpack connected Omid Mashinchi has been sentenced to two years in a U.S. prison after he admitting to international money laundering. He wired hundreds of thousands in dirty money to the U.S. The former Vancouver realtor admitted to leasing condos to gangsters, including the notorious Gavinder Grewal who was executed in one. Mashinchi was charged in a sealed indictment and arrested in April when he flew to the U.S. to visit family. He has been in custody since.
The high-end condos and houses Mashinchi leased to criminals were targeted by drive-by shootings or were used as stash houses for drug trafficking.

Mashinchi's leasing operations seem to have continued without interruption during his incarceration. Despite numerous complaints that he was leasing out 3rd party properties in buildings that didn't allow rentals, many commercial websites continue to send unwitting customers to Mashinchi's 'Residence Club'.
See ----->Wolfpack Realtor Omid Mashinchi Busted

Friday, November 16, 2018

Utah man nailed in $ 170m silver Ponzi Scheme

The SEC has launched a civil enforcement action against Rust Rare Coin Inc. and its owner Gaylen Dean Rust after they say a ponzi scheme defrauded hundreds of people out of $170 million over several years.

The scheme has operated since 2013 and may have been operating since 2008. Rust attempted to solicit new suckers as recently as October of this year.
Investors were told they were buying into a share of a pool that purchased precious metals when prices were low and sold them when prices were high. Rust promised returns of 20% to 25% per year and provided fraudulent documentation to back up his claims.

Rust told investors the Silver Pool had about $80 million worth of silver stockpiled at various locations. That was rubbish.
Rust used incoming money to pay off earlier investors and for personal expenses including to bankroll betting on horses.

Meth on a serious rise

Methamphetamine, commonly referred to as meth, is a stimulant. Common street names include chalk, crank, crystal, ice and speed. Meth contains a cocktail of drugs. Pseudoephedrine is found in some cold medicines and diet pills. In large quantities it damages the respiratory system, nervous system and heart.

Acetone is found in nail polish remover and paint thinner and anhydrous ammonia is found in cleaners and fertilizer. That isn't all. Hydrochloric acid is thrown into the mix. It’s used in making plastic. Lithium from batteries is used. Sodium hydroxide or lye is used, as well as sulfuric acid which is found in drain and toilet cleaners. The list goes on.
The high from the drug starts and fades quickly, so users often take repeated doses to keep their high going. People can go days without sleep. Users suffer severe side effects. One is 'meth mouth'. The meth removes the enamel from teeth, causing them to quickly decay. Paranoia is a common side effect. Meth is extremely addictive, and even those who manage to quit have a high chance of relapse.
The situation in Winnipeg and across the prairies is being described as epidemic. It is becoming the 'drug of choice' and is eclipsing opioids. The perception seems to be that it is 'safer'. Thanks to industrial production from Mexican cartels, meth has never been cheaper. Cops in Winnipeg say a tenth of a gram of meth costs $5 to $10, far cheaper than anything else.

See ----->Meth gaining strength, costing less

13 arrested in Montreal Hells Angels linked bust - Update

A total of 34 arrests have been made since the beginning of an investigation launched in 2017 as a result of fentanyl overdoses in Montreal.

Montreal police worked with the police services in Granby, Quebec City and Laval and the Sûreté du Québec to conduct the raids. Cops seized 600,000 methamphetamine tablets, 5 kilograms of MDA, 50 pounds of pot, weapons and more than $120,000 in cash.
Four Quebec police forces targeted a criminal biker gang linked to the Hells Angels. 13 arrests were made in a series of raids. Reports say the operation is related to a string of fentanyl overdose deaths in Montreal. 11 raids were carried out in Montreal with two in Laval. The Minotaures Ouest-Montreal is a puppet club of the Hells Angels.

The connection of fentanyl trafficking to the Hells Angels doesn't sync with the club's apparent public stand against fentanyls.

Thursday, November 15, 2018

Cocaine in the News

The crew of the Coast Guard Cutter James offloaded about 18.5 tons of cocaine Thursday at Port Everglades in Fort Lauderdale. The cocaine was seized in international waters in the Eastern Pacific Ocean in 15 separate drug smuggling interdictions by multiple U.S. Coast Guard cutters.

The cocaine is said to be worth $500m.

In Belize, 480kg of cocaine went up in smoke today. It was seized in a bust Nov 1. Peru and Bolivia have fallen in their attempts to eradicate cocaine production. Peru's production reached a 25-year high with about 500  tons produced in the country, a 20% increase. In 2008 Bolivian President Evo Morales expelled the DEA, saying it did more harm than good. Cocaine production there is also rising.

Homeless man, couple accused of conspiring in GoFundMe scam

The couple were so 'moved' they started a GoFundMe campaign for him.A homeless man hailed as a Good Samaritan is accused of conspiring with his benefactors to scam hundreds of thousands in an online fundraising scam. New Jersey prosecutors allege Johnny Bobbitt Jr. worked with Mark D’Amico and Kate McClure in the rip-off. The trio face charges that include conspiracy and theft by deception.

The sob story was a homeless Marine vet, who gave McClure his last $20 after she ran out of gas.
“Johnny did not ask me for a dollar, and I couldn’t repay him at that moment because I didn’t have any cash, but I have been stopping by his spot for the past few weeks,” McClure wrote on GoFundMe. Thousands were suckered when the story went viral with the take a whooping $402,000. The couple bought BMWs and took pricey vacations in Florida and Las Vegas. “He will never have to worry about a roof over his head again!!” the duo later posted on GoFundMe.

Wednesday, November 14, 2018

Jailed Russian Gangster trades caviar for solitary confinement

One of Russia's most infamous gangsters and murderers, Vyacheslav Tsepovyaz, who is serving a 20-year prison sentence, has been placed in solitary confinement after photos of him receiving privileged treatment circulated on the Internet.

Tsepovyaz was a member of the notorious Tsapok gang, which terrorized a rural farming community in southern Russia from the late 1990s until 2010.
Members of the gang were found guilty of scores of kidnappings, robberies, and a series of murders, including the brutal slaying of a wealthy farmer and 11 other people in 2010 that provoked a national outcry. It became known as the Kushchyovskaya massacre. The case sparked more controversy after investigations revealed the group's strong ties to local Russian officials.

Tsepovyaz's lawyer criticized the decision, saying that it was made "for unclear reasons."

Notorious gang leader Sergei Tsapok died in prison in 2010.

HA, Thai wife given death penalty for half tonne of Meth

Perth HA Luke Cook, 34, and his Thai wife Kanyarat Wechapitak, 40, were charged in relation to a 2015 plot to smuggle $300m of crystal meth into Thailand and then onto Australia. Cook masterminded the shipment of drugs from China to Thailand. The shipment was dumped off the southeastern Thai province of Chonburi after being spotted by Thai authorities. 200 kg of the drug later washed ashore at Mae Ramphueng beach in Rayong province in June 2015. Police say Cook was paid $10m by the Hells Angels to buy and store the drugs for later shipment to Australia.
Cook and his wife ran a boat rental business, Global Marine Solutions, and had ties to HA Wayne Schneider, who was murdered in Thailand in November 2015. Its believed Schneider paid Cook to smuggle 500kg of the drug into Thailand.
Executions in Thailand are rare. Most likely the couple are facing life imprisonment. Thai police confiscated assets including luxury cars, property and cash.
See ----->Oz Hells Angels bikie arrested for smuggling 'ice' in Pattaya
See ----->6 Aussie Hells Angels on the run after wings clipped in Thailand

Tuesday, November 13, 2018

Selfie sinks alleged Drug Dealer in Vancouver

Randy Billy Bastien was taken into custody and faces charges relating to drug possession for the purpose of trafficking.Police said they noticed a driver around 1 a.m. who appeared to be taking a photo of himself on a cell phone. The vehicle was pulled over, and cops saw a bag of what looked like meth. Police seized 16.5 ounces of meth, 23.3 ounces of cocaine, 3 grams of heroin, 13.9 ounces of a cutting agent, 229 Xanax pills, two cell phones, a digital scale, and $2,285 in cash.

The drugs were valued at almost $65,000.

Homeless 'trolley man' becomes hero in Melbourne attack

A homeless man who intervened in a terror attack in Melbourne has been hailed as a hero. "The guy was out of control so I just went into action mode and tried to swipe him with the trolley."
Images from the scene showed a man repeatedly shoving a shopping cart, known as a trolley in Australia, at attacker Hassan Khalif Shire Ali who had just stabbed three people and was threatening police with a knife.
The attack began when a vehicle burst into flames. Hassan Khalif Shire Ali emerged and started stabbing passersby. One was killed, two wounded. Police shot the attacker, who died in hospital. People who knew Ali said he was not a terrorist, he was suffering from mental illness for years.

Monday, November 12, 2018

The Republic Metals Fraud

A US bankruptcy judge has approved procedures for Republic Metals Refining Corp., a Miami-based precious metals refiner that filed for Chapter 11 bankruptcy. The company refined gold, silver, platinum and palladium. Republic Metals has $285 million in liabilities and reported a $100m "inventory discrepancy" involving missing precious metals. It filed for bankruptcy two days after the October 31 collapse of a proposed sale of the company to Valcambi SA, one of the world's largest gold refiners. Republic Metals was incorporated in Florida in 1980 by Richard Rubin. He died in 2013.

Legal troubles started with lawsuits from unpaid creditors last year.
Republic Metals was suspected of buying hundreds of tons of illegal gold from South American exporting firms, managed by illegal mining operators linked to drug money laundering, organized crime, and cross-border smuggling. Illegal gold mining in Madre de Dios, Peru.
Republic has about 35 supplier agreements that provide for the supplier to deliver gold and silver dore bars or other similar raw materials to Republic Metals for refining. They will very likely be fleeced for millions.
See ----->Gold the 'Ferrari' of money laundering - Peter Ferrari

Trial begins tomorrow for El Chapo

Drug kingpin Joaquin “El Chapo” Guzman Loera will face charges of trafficking $14 billion of drugs into the U.S. on Tuesday. The feds have promised to link him personally to violence with a video of him interrogating a bound victim, and chilling first-hand informant testimony about his feuds with rival gangs like the Zetas.

Prosecutors planned to put so much evidence of killings before the jury that they have drawn warnings from the judge to trim their claims of more than 30 murder conspiracies. The government describes Guzman as the “most notorious drug trafficker in the world” and his cartel “the world’s largest and most prolific drug trafficking operation”
The 'smoking gun' will be the informants — at least 16, court documents say. They “operated at every level of defendant’s organization and have knowledge of the inner workings of the cartel.”

Even the defence seems to predict doom for their client, “The manner in which the government has conducted itself will result in a show trial where guilt is a foregone conclusion.”
See ----->Son of Sinaloa Cartel drug lord makes a deal
See ----->Mykhaylo 'Russian Mike' Koretskyy