Dear Clients,

This week we received a notice from the District Attorney’s Office in Zagreb that our latest submission, which supplemented the criminal complaint, has been added to the case files. We must be persistent, tenacious, and patient, and with undiminished enthusiasm, give our all to bring this case to a close. As a reminder, this case is classified as one of the top 20 crypto frauds of the 21th century

Below is another part of the criminal report:

EXPLANATION

1.

The seventeen listed suspects in the introductory section have committed the continued criminal offense of fraud in co-perpetration (conspiracy to defraud) under Article 236 Paragraph 2 of the Criminal Code of the Republic of Croatia.

They perpetrated this criminal offense by founding several companies between 2018 and 2021 listed below in the territories of European Union countries, and offshore zones such as Malta, the British Virgin Islands, Vanuatu, Hong Kong, and other countries;

This was done with the intent to create an impression of legitimacy for their business operations with the aim of gaining unlawful financial benefits for themselves and co-perpetrators.

The suspects employed various means, including creating websites, conducting presentations via the ZOOM platform, and organizing personal meetings worldwide, to deceive the victims through false representations and concealment of material facts regarding their companies and business operations. Moreover, the suspects claimed to have authorizations and licenses that they did not possess, which were mandatory for trading on stock exchanges. Consequently, the victims were induced to open an account on the company’s website and invest their money on multiple occasions, leading to substantial financial losses.

The victims became investors and clients of the companies by purchasing electronic software that performs financial arbitrage services, replacing the role of a broker on the stock exchange, specifically for trading cryptocurrencies and other commodities. The investors were promised investment security and guaranteed monthly profits ranging from 4% to 15% of their invested capital.

The suspects endeavored and to a significant extent succeeded in establishing confidence and security amongst investors by initially disbursing the promised profits in the form of cryptocurrency Bitcoin, with the ultimate objective of luring more individuals to invest. Additionally, they provided incentives for recommending new members through a multi-level marketing scheme. However, after a period of time, there were complications and delays in remitting payouts for reasons that were not transparent to the investors. The suspects failed to provide investors with a clear explanation regarding the situation. They misled investors into believing that the payouts would continue, and kept them uninformed until they established a new company, Jenco Tech Limited. The suspects then made it a prerequisite for investors from the first project, Jubilee Ace, to invest more money and transfer their electronic accounts from the Jubilee Ace website to the new Jenco company. The suspects made the payment of the promised profits contingent on the victims transferring their accounts and depositing fresh funds.

To be continued….

Zoran Miljakovic
Attorney at Law