International Fraud Case: Swedish National Roger Karlsson Charged by U.S. Justice Department

Overview of Allegations

The U.S. Department of Justice (DoJ) has cracked open a case against Roger Nils-Jonas Karlsson, a Swedish citizen, and his firm Eastern Metal Securities (EMS). Released on June 19, the press announcement reveals the gravity of the fraud charges against Karlsson, which include securities fraud, wire fraud, and money laundering.

The Scam Explained

Karlsson’s alleged scheme revolved around convincing investors to pay for what he touted as lucrative investment opportunities using virtual currencies, chiefly bitcoin. Through a website registered under a fictitious name, he offered shares of a so-called “Pre Funded Reversed Pension Plan”—sounds fancy, doesn’t it? Each share was pitched at $98 with the promise of a staggering return in gold—1.15 kilograms, valued at over $45,000 as of early 2019.

Investigations and Discoveries

However, those promising gold bricks were more of a mirage. An IRS Criminal Investigation unit found that Karlsson didn’t have any substantial backing for the payouts he promised. Instead, his riches appeared to be funneled into real estate investments in Thailand, not a golden pyramid!

The Extent of the Fraud

The operation seemed slick, running under not one but two websites—EMS and HCI25. By the investigation’s estimates, Karlsson netted over $11 million from around 3,575 investors. That is quite a crowd to dupe! These shady endeavors reportedly date back to 2006, proving that when it comes to scams, longevity isn’t a testament to legitimacy.

Extradition Requests

In a twist worthy of a crime drama, Karlsson was apprehended in Thailand on June 18, just one day before the DoJ unsealed the fraud complaint. The U.S. is currently requesting his extradition to face charges in the Northern District of California. One can only imagine the family gatherings in Sweden were tense while this plot thickens.