Nancy has launched the trial of the ‘Red Card’ fraud, which saw over 1,000 victims, including prominent French football teams, lose €28 million ($30 million) via false cryptocurrency and diamond investment schemes.
On Monday, the initial statements of twenty-two defendants were heard at the convention center of the city. The venue was selected due to the inadequacy of a courtroom to facilitate the 850 victims who were represented at trial. One of the victims lost €400,000 ($433,000) in what they perceived to be a “diamond savings plan.”
Some even received counterfeit diamonds, which were worth only fractions in comparison to their investments.
Between 2016 and 2018, the defendants, who range in age from 28 to 73, are accused of establishing 199 bank accounts in 19 countries to finance diamond and crypto fraud schemes.
The Red Card case, also known as the “Carton Rouge” in French, was named after the theft of €60,000 ($65,000) from the football clubs Sochaux, Angers, and Toulouse.
Marseille, Nantes, Lorient, Dijon, Brest, and Rennes were among the six additional cities that were targeted, but they declined to comply. The sponsors of the football organizations were also targeted.
The fraud utilized approximately 30 websites to deceive victims into believing that their investments in cryptocurrency and diamonds would yield a guaranteed return of 6-to-8%. The funds that were collected would be transferred to the nearly 200 bank accounts that the fraudsters controlled worldwide, and they would then be laundered to eliminate all traces.
Nevertheless, authorities were able to confiscate €2.8 million ($3 million) in order to provide compensation to the victims.
Six additional defendants have already entered guilty pleas. In the interim, three additional individuals are still on the run. They have been the subject of international arrest warrants.
Also Read: The UK FCA maintains a firm stance on cryptocurrency
Wallets