Episode Transcript
[00:00:00] Out of cycle.
[00:00:02] There's a saying the civil will always get you. CryptoTalk FM. My name is Leister. I'm your host. Have an update regarding this Saitama Scam syndicate. A little just happened today, was just filed in the course today and then processed through the online civil updates. So this came from the sec. The SEC was the one that filed the civil action in the first place against who I refer to as a Saitama Scam syndicate, largely led by the cult leader Russell Armand, but it also includes nam, it includes Manpreet Coley. This civil action is. There was a summons basically, and the summons says it was issued to their council on their behalf, basically saying you got, you better show up and if you don't, we'll enter a default judgment. The judgment, people are curious is what the judgment is. Let me get to there. But first let's talk about the summons that was filed in the district of Massachusetts. So quote, lawsuits been filed against you within 21 days after service of this summons on you, not counting the day you received it, or 60 days if you're the United States or US agency, which they're not, or an officer or employee of the United States described in this Fed, you are not, you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of the Federal Rules of Civil Procedure. The answer, a motion must be served on the plaintiff or plaintiff's attorney whose name and address are da da da da. If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court. So SEC is the plaintiff in the case. Of course, Russ Cult leader is the primary defendant. Now that I found it interesting that they named him as the primary defendant when he was not the one that was primarily enriched. As we would learn, Manny the rug puller was the one who made out like a bandit on your money and you know, with this big scam. So I found it interesting he was named as the primary defendant and I, I, that's why I was talking in that coverage.
[00:02:04] They put, I think he's a mark. You know, they put him as the face of the brand, the CEO slash coo. And then perhaps he's taken the fall cause he was one of the one that took a plea deal. So he admitted his guilt in as part of the, you know, Satan scam syndicate. So I don't know all the deep innards of why they specifically targeted him other than that title because I can't think of any I don't see any other data related reason why he would be considered the primary as opposed to the rug puller because I felt the rug puller should be the one that's on primary. But it seems like for the purposes of the civil, for why ever they're going out to cult leader and then for the purposes of the criminal, they're absolutely going after Manny the rug puller. And in Nam, I see no update that they've tracked the dude down. So I don't know what the hell's going on there. Don't have any information. But then people are curious about, well, what is this really talking about? And this is where it gets sticky because when I looked at the complaint for the civil case, there's a lot of different statutes that are cited. So what they do, the dollar amounts are not called out in the complaint because they leave it to whatever the statute calls for. There's a whole different hierarchy of numbers. And so I don't want to bore you with this one, this will be quick. But there's two different elements. One is monetary compensation, just because it's basically a penalty. Then there's what they refer to as disgorgement, the idea that if you were enriched as part of this scam, we want to try to recoup some of that money as a claw back. So that's disgorgement. So what they're trying to do is get money back, presumably to make people whole that were ripped off. There's an FBI link, you can report your information there. I don't recommend doing it because then you're exposing your wallet. And then of course they'll just share that to the irs and. But feel free to disregard me if you want to try to get some money back from these scammers.
[00:03:45] But just some of the numbers that were tossed around. And again, this is all over the board because you can't tell. Like it would take somebody sitting down and just kind of reading it for a couple of hours to kind of figure out what's the exact number penalty. And then they're leaving it up to the. Because at the bottom they're saying they're leaving it to the court to decide if there's additional penalties they want to apply based on the case made. So even the numbers here aren't necessarily the capped numbers. This is just a start point quoted in the statute.
[00:04:12] First tier they've got is the lower of 50,000 for other people or 5,000 bucks who are a natural citizen. So that's a. This is like A light penalty. This is like, okay, you did a reasonably light crime. There was not significant harm. We're really just trying to send a message more than anything else. I don't think that's going to apply here. The second tier is the greater of 50,000 for a regular person or 250,000 person for somebody that's not. Or the amount of gain as a result of the violation if it involved fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement. This one sounds very close, but then let's go to the next one, which is three.
[00:04:52] The greater of 100,000 for a natural person, 500,000 for another person, or gross amount of pecuniary gain to such defendant as a result of the violation includes the fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement. And such violation directly or indirectly resulted in substantial losses or created a significant risk of substantial losses to other persons. Sound familiar? It should. Chances are this third one is the one that they would apply.
[00:05:22] So the minimum amount of money they would ask for would be $100,000 per person. That's important. So it's per person. So each of these people. So they got four people named by default. So 400,000 bucks. Well, it didn't sound like a lot when you think about the millions and millions of dollars that they made off of that was your money. The sama scam sentence kit broke off of people that they were stealing from. So chances are they're going to go way higher than that, and then they're going to go punitive. This is all theory. I don't know. I'm not the judge. But chances are they're going to go higher because of the punitive and the. The level and the nature of the deceptives in them talking about pump it up and all these gifts and all the lying they were doing intelliscam and everything that they were doing to purposely hide. It's not like it's an incidental crime. Then they got to talk about the disgorgement. Because if you take. Let's say they go with a minimum penalty and they bottom line it like a million dollars, right? They're going to do a disgorgement for sure. That's they have a pool of $22 million they can try to tap from, and that's assuming that money hadn't already been spent. So now it starts you thinking how much of that money got spent already on, you know, worthless crap? This is why I was wondering why Christina wasn't named in the complaint. Because we know that she got enriched with some of this stuff. And when they separated, certainly she would have kept some of that stuff. So this might be a rabbit hole for the cult leader. And perhaps that's why they named him first, is because they assumed they'd get more money out of him. I'm not agreeing. I think most of the money would come from Manny the rogue puller. And perhaps that's why they're kind of putting him in a room on the criminal case. And you know, he's out on bail, but they're going to try to go after him in December. Maybe that's why, to pin him down to get something on the criminal side, maybe. But why not take it on the civil case? And you know the numbers. You know that many of the rug puller made more money than the rest of these numb nuts. So why wouldn't you go out to him? That I do not know. Anyhow, summons has been issued for them to show up in court. If they do not show up in court, they're going to have a problem on their hands. I don't know exactly what the timing of all this is of how long, you know, they have the timing of how long they have to respond. I'm talking about when the summons and the next steps in the case have to happen is more what I refer to. And we have to see what that number looks like. I don't know what that looks like. There are some remunerations if you are interested in doing that. The FBI does have a link where you can set up and it does ask you for your wallet address and you would have to give that to prove any losses that were occurred. And then the tricky part is that in my mind, in order to validate a true loss, you'd have to have still had those tokens left in your wallet when they lost their value. So, like if you burned them or you sold. Right. They'll still be able to make a case. But it's easier if you left the tokens in the wallet so they knew how much you still had left over at the time that everything went south. I'm just sharing that from my personal perspective. I don't know exactly how they handle it because I'm not going to be doing that. I mean, I took a loss, but it wasn't a big loss. Like I didn't have a lot of money in there to begin with. And so I was willing to let it go. I'm really sharing the information for other people who are absolutely excited to potentially get some sort of recoupment on what was taken from them by the Saitama Scam Syndicate. There you go. That's your update on this nonsense and bullshit.
