The originator of a gold and diamond investment fraud scheme has been sentenced in a North Carolina federal court to more than seven years in prison. The scheme, orchestrated by Cassell Anthony Kuoh, bilked victims out of more than $9.5 million.
Kuoh is a Liberian national who lived in Liberia and owned Phoenix Mining and Investment Group (Phoenix Mining), which claimed to be in the precious metal and gemstone business.
From 2012 to 2016 Kuoh devised and operated a scheme involving the purchase, shipment, and export of unrefined gold and rough diamonds from Liberia.
He told investors their money would be used to move the gold and diamonds into the United States, which then would be refined or cut and sold for a profit. As part of the scheme, he even invited investors to Africa to visit the mining operations and inspect the gold and diamonds.
For investors who made the journey, operations were set up by Kuoh to look legitimate and profitable, when in fact Kuoh borrowed gold and diamonds from others. Once Kuoh received the funds from investors he used stall tactics and lies to cover up the scheme, including falsifying documents and creating fake companies.
According to prosecutors, Kuoh used investors’ money to fund his personal lifestyle, including the purchase of a house in Harrisburg, North Carolina.
Kuoh Pleads Guilty Prior to Sentencing
In addition to seven years in prison, Kuoh was ordered to pay $16.2 million in restitution. As a Liberian national, he also will be subject to deportation proceedings upon the completion of his federal sentence.
In March 2017, he pleaded guilty to conspiracy to commit wire fraud. Kuoh’s co-defendant, Emmanuel Tarr, 30, of Liberia, is awaiting sentencing after pleading guilty to wire fraud conspiracy.
Do You Lose Money in an Investment Fraud Scheme?
If you have been a victim of an investment fraud scheme or are suspicious that your broker is not acting in your best interest, you may have certain legal rights that require your immediate attention.
Call an Investment Fraud Attorney Today
If you are looking for an investment fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from brokers and brokerage firms for their wrongful actions.
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Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.