Amsterdam man suspected of siphoning €26 million in Ponzi scheme; Woman also held
Authorities arrested a 26-year-old Amsterdam man earlier this month on accusations that he stole approximately millions of euros by operating a Ponzi scheme. He is suspected of providing investment services without a license and forgery. Additionally, both he and a 29-year-old woman living with him are suspected of money laundering, financial crimes inspectorate FIOD said.
The suspect is believed to have "stolen a total of approximately 26 million euros from investors and enriched himself privately, because part of the money was spent on a very luxurious lifestyle, including expensive cars, jewellery, holidays, art and rental of a private jet," FIOD said in a statement. The arrests took place on April 11, but were first announced on Thursday.
During the investigation ten days ago, authorities searched and inventoried the suspects' home. The home, valued at 7.5 million euros, was seized. Authorities also seized 1.5 million euros in jewellery and art, and three cars worth a combined total of 700,000 euros. Other valuables, including clothing, were also taken by FIOD.
The investigation was triggered with a report filed by the Authority for Financial Markets (AFM) against the man. The watchdog first suspected the man of offering unlicensed investment services after several banks notified the AFM of "large, unexplained transfers to the suspect's bank account."
The banks raised red flags because "these money flows indicated a so-called pyramid scheme or Ponzi scheme, in which the investment from one investor is paid out as returns to another investor."
The 26-year-old was remanded into custody for two weeks, and will face another hearing about extending his detention later this month. The woman was released from custody after she was questioned. She remains a money laundering suspect, FIOD noted.
