Crypto Scam and Life Worth MillionsColin Baseman
Lavish lifestyle is impossible if there are no funds. However, two million USD would be more than enough to make anyone’s life much more comfortable and enjoyable. If the money is honest, then there is nothing to worry about. However, the case described below tells a different story.
A trust had no other way than to sue Brock Flagstad, who misappropriated more than two million USD. The businessman funded his life using cryptocurrency the main purpose of which was trading.
Flagstad tried to solicit the cryptocurrency, claiming that he needs it for trading related to digital assets. Currently, the trust complains about Flagstad taking funds and using most of the invested sum to make his own lifestyle more luxurious. He used the invested money to purchase expensive cars, maintain his rich lifestyle and buy private jets.
Trust Against Businessman
The mentioned trust has brought their individual complaint against the businessman. They also sued several companies managed by Flagstad. Their complaint included plenty of proofs and facts of his theft and fraud. Flagstad was also accused of dishonesty, including duties, broken promises, agreements and contracts. The case describes many other illegal actions.
James Streibich is a trustee of Flagstad and has been working with him since 2018. Back then the latter was planning to provide his financial support and let Folding Light use investments for the company’s platform.
However, the attorney knew what purpose the money would serve. It was necessary for trading. Of course, the trust in its turn was offered some certain interest. That was going to be accomplished in exchange for an investment of around two million USD. At the same time, the trust made investments of their funds and, just after two weeks, Flagstad started pumping the investments and transferring them to outside sources. He also sent it to some of his bank accounts as well as other ventures.
Flagstad’s Request for Loan
The team abandoned Folding Light two years ago. Their mission was to establish a new firm. Then the trust received Flagstad’s request for a loan of two hundred thousand USD. The request was accepted. In 2019 the investors realized that Flagstad refused to continue to make further payments on the loan they provided. They found out Flagstad changed his living place and moved to another state. At first, it was very difficult for them to trace the businessman’s location.
It is reported that Flagstad owns a few companies. He operates them from Chicago using the same address. Interestingly, more plaintiffs appeared and told the authorities how they suffered from the described schemes.
It seems it was quite easy for Flagstad to solicit thousands of USD and transfer the funds to private accounts. Some of the investors who trusted Flagstad are prominent, influential, and experienced enough yet even they became victims of Flagstad’s manipulations.
Luxurious Life at Investors’ Cost
Now it is obvious that the businessman used most of the investment funds to fuel his own life. Almost 850 thousand USD reached Flagstad’s private bank account. The trust is sure that part of the funds belonged to them before they trusted the businessman hoping he would use it for further developments and trading. Right now the trust is seeking compensation. They need it to restore since the damages they experienced were devastating.
Allegations Are Denied
Stan Sneeringer, working as Flagstad’s attorney, reported that all allegations against the businessman are false. They are ready to prove it and defend themselves. The attorney does not believe in the complaints and is prepared to fight for the accused businessman.
The case may take a few months since it’s a complicated issue. It involves huge money and a lot of people who may have invested thousands of USD and become Flagstad’s victims.
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