The defendants allegedly convinced investors to acquire shares in an investment product called “Pre Funded Reverse Pension Plan (PFRPP) for $98 each. In exchange, they falsely claimed that investors will receive an eventual payout of 1.15 kilograms of gold per PFRPP share.
Prosecutors noted that Karlsson assured investors that he will return 97% of the amount they invested in the event that the promised gold payout did not happen.
Additionally, Karlsson made multiple false communications to potential investors using the HCI25 website. He told investors in HC125 and PFRPP shares that a payout did not occur because releasing a huge amount of money at the same time could cause a negative impact on financial systems worldwide.
In fact, Karlsson did not hold a corporate bank account to allow him to pay off investors. He transferred victims’ funds to his personal bank accounts. He used the money to purchase expensive homes and a resort in Thailand, according to the Justice Department.
SEC filed charges against the defendants
Furthermore, he falsely claimed to investors that EMS was working with the U.S. Securities and Exchange Commission (SEC) to prepare the process for a payout.
