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Photo right : Jen Shah ( center ) of Real Housewives of Salt Lake City fame was ordered to serve six and a half years in federal prison for her schemes .
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Crypto fraud : “ Pig butchering ”
In another case , a resident of the Bay Area in California unexpectedly received a text advising him to invest in cryptocurrency . 8 The woman who contacted the individual assured him that because of his investments , he would never again be without money . The man was purported to have been emotionally vulnerable at the time due to his father ’ s illness and the intense pressure he said he was receiving from his family . 9 He lost over $ 1 million dollars by investing money in fake cryptocurrency platforms — a new and quickly spreading crypto-related romance scam known as “ pig butchering ” in which targets are “ butchered ” by people who convince them to invest large sums in cryptocurrency-fueled trading platforms . The Bay Area victim was later informed that he would receive about 10 % of the lost amount — a portion of the $ 318,000 in cryptocurrency that was seized by the Santa Clara County deputy district attorney ’ s office . 10 The case was investigated by the U . S . Secret Service and the Santa Clara District Attorney ’ s Rapid Enforcement Allied Computer Team ( REACT ) Crypto Task Force .
CipherBlade , a cryptocurrency investigative analysis firm , says that it is estimated that nationwide losses from pig butchering scams are in the “ tens of billions ” of U . S . dollars . 11 The FBI reported in 2021 that $ 1 billion was lost to romance scams including pig butchering fraud , while 2021 data from the Federal Trade Commission ( FTC ) noted losses of $ 139 million in crypto-related romance scams . 12 According to CipherBlade , it is “ safe to say both … figures are gross underestimates ” of the actual amounts swindled in crypto-associated romance cons , most of which are currently pig butchering scams . 13 In fact , a special alert issued by Homeland Security Investigations ( HSI ) in partnership with ACAMS in April 2023 put the figure for 2022 U . S . -based cryptorelated investment fraud losses at approximately $ 3.3 billion . 14
Financial fraud and telemarketing fraud : Jen Shah
Reality television stardom has catapulted its participants , such as the aforementioned Chrisleys , into some of the most unbelievable financial fraud schemes in recent years . Jen Shah , star of Real Housewives of Salt Lake City , is another example of a reality television celebrity who turned to financial crime for even greater riches .
In an interview posted by White Collar Advice on YouTube , Shah discussed her life as she was preparing to enter federal prison for 78 months . In her interview , she indicated that she was apologetic for her actions , which targeted elderly individuals , and constantly reiterated what she would do to redeem herself upon her release . According to the U . S . Department of Justice ( DOJ ), Shah ’ s scheme “ principally involved selling … victims ‘ business services ’ in connection with the victims ’ purported online businesses ,” also known as the “ Business Opportunity Scheme .” As of January 6 , 2023 , she has been ordered by the DOJ to forfeit $ 6.5 million , 30 luxury items and 78 counterfeit luxury items and pay approximately $ 6.65 million in restitution . 15
78 acamstoday . org