Be careful when seeing claims about making easy money. More often than not, these blinding promises are too good to be true.
Instagram influencer Jebara Igbara, known on the social media platform as “Jay Mazini,” finally admitted that he is guilty of scamming investors out of millions of dollars via his fraud solicitations for his Ponzi scheme and Bitcoin scam. In Brooklyn, New York’s federal court, he pleaded guilty to conspiracy to commit wire fraud and money laundering.
The 27-year-old allegedly asked for money in exchange for stocks, electronic gadgets, and COVID-19 protective gear. Amassing nearly a million followers, the disgraced influencer successfully milked over $8 million worth of funds from the Muslim-American community in New York.
Igbara rose to fame by giving random people money, and posted about it on his social media account. This led people to believe that he was financially reliable and that they could trust him.
He used his company, Halal Capital, from 2019 to 2021, to solicit money from investors while failing to actually invest. He was able to trick people by presenting fake proof of wire transfers. Instead, the funds were used for his own personal expenses.
He faces the possibility of an eight to 10-year sentence, or 20 years if he’s given the maximum. In addition to this, Igbara will forfeit more than $10 million in property, pay his victims around $5 million, and pay fines worth $500,000.
Ponzi schemes, said to be invented by Charles Ponzi, have been around for decades. It involves a scam where a few investors are initially recruited, promised quick investment growth, and are asked to testify regarding the investment’s legitimacy, in an attempt to lure more people in. One of the most well-known Ponzi schemes was done by Bernard Madoff, who successfully bagged billions of dollars.
With the rise of social media and its influencers, it is now easier to reach out to people and convince them to join the scheme, since influencers are generally trusted by many. Modern day scammers have also scanned the market and know their targets, which are mostly middle income earners who are eager to earn a quick buck.
People should always be on high alert when being given offers and check agreements carefully, especially when it involves their hard-earned money.