U.S. authorities have identified potential victims of an alleged high-yield investment scam in Canada and numerous states — and they are looking for more.
The FBI is seeking victims of a possible investment scam related to Nevada-based Jazarco International Trust LLC, which was operated by Arizona resident Melvin Palmer. The FBI reports that Palmer was indicted on 40 counts of conspiracy, wire fraud, mail fraud and aggravated identity theft in the U.S. District Court for the District of Arizona on June 23. The charges have not been proven and the investigation is ongoing.
The indictment alleges that Palmer defrauded 76 investors of approximately US$2.7 million by falsely claiming that funds invested with the firm were collateralized by gold stored in high-security warehouses in Arizona and New Mexico. Instead, it is alleged that Palmer diverted the majority of the purported investment funds to pay for his own personal living expenses.
Potential victims of the scheme have been identified in Canada and 17 U.S. states, the FBI says in a statement, and it is seeking others.