A scam runs in two phases. First the money of the investors and/or members is stolen. Next, this criminal proceeds must be laundered and funneled to the perpetrators as their ‘scam dividend’. Listed below are the currently known entities and individuals who participated in the money-laundering of OneCoin’s Crypto-MLM Scam. The FinTelegram Research Team will update the information on an ongoing basis.
The Fenero Hedge Funds and Network Entities
The construction of the Fenero Hedge Funds was used to collect, launder, relabel, and invest the funds received from OneCoin members via various “feeder companies”. The incoming funds were disguised as investments from wealthy European families.
The Fenero Hedge Funds investments enriched and/or benefited only the OneCoin crypto scam’s founders, the management team, and the partners around Ruja Ignatova, Sebastian Greenwood, and their accomplices. The Fenero Hedge Funds and its companies are at the heart of the global money laundering of the OneCoin Scam.
- MSS International Consultants LLC, United States, established by US lawyer Mark S. Scott in 2011. It was the sole shareholder
- MSS International Consultants (BVI) Ltd, British Virgin Islands, est. in Feb 2016 to establish, own and operate
- Fenero Equity Investments L.P., BVI, est. March 2016;
- Fenero Equity Investments II L.P., BVI, est. May 5, 2016;
- Fenero Financial Switzerland L.P., BVI, June 2016;
- Fenero Equity Investments (Cayman) I L.P., Cayman Islands, est. April 2016;
- Fenero Equity Investments (Ireland) Limited, Ireland, est. April 2016;
- Fenero Tradenext Holding Limited, Ireland, est. April 2016;
- Fenero Pct Holdings Limited, Ireland, est. April 2016;
- Fenero Trading Malta Limited, Malta, est. Feb 2017;
There are more Fenero entities than listed above. At the Irish address, South Bank House, Barrow Streed in Dublin Fenero Securities Trading Limited or Fenero Tempsec Limited are also registered. Additional Fenero companies can be found in other jurisdictions.
According to the U.S. investigations, the following entities were associated with the Fenero Hedge Funds in the global money-laundering scheme
- Phoenix Fund Investments, UAE, Aamer Abdul Aziz (aka Amer Abdulaiziz)
- Mumbelli Group LLC, US, Nicole J. Huesmann, David R. Pike
- RavenR Capital Limited, UK, Ruja Ignatova
OneCoin – Feeding monies to the Fenero Hedge Funds
According to the findings of U.S. authorities, between June 2016 and February 2017, the Fenero Hedge Fund accounts collectively received wire transfers totaling approximately €364 million and $10 million. These wire transfers originated from approximately 10 different bank accounts held in the names of various entities, including
- International Marketing Services Pte Ltd (IMS -1)Singapore,
- IMS International Marketing Services GmBH (IMS-2), Germany, Manon Hübenthal, see balance sheet as of Dec 31, 2016.
- International Marketing Strategies Limited, UK, Frank Rickets, Manon Hübenthal (previously Manon Wissmann, read this article in Daily News on money-laundering charges)
- B and N Consult EOOD, Bulgaria, Irina Dilkinska, owned by LeonGroup7, Bulgaria,
- Fates Group LLC, United States, Gilbert Armenta,
- Star Merchant Inc. Limited, Hong Kong, Ruja Ignatova
Most of the feeder companies to the Fenero Hedge Funds are under the direct influence of the OneCoin founders or management. We have the names of Ruja Ignatova, Gilbert Armenta or Irina Dilkinska in the documents. According to the findings of the US authorities, these feeder companies collected the funds of OneCoin members and then sent them to Fenero Hedge Funds.
Money-Laundering via Germany
On 17 and 20 February 2017, the German regulator BaFin imposed an account freeze on the known to still be active bank accounts which IMS International Marketing Services GmbH. Subsequently, on 5 April 2017, BaFin ordered IMS to immediately cease and wind down its unauthorized money remittance business with investors in “OneCoin” for Onecoin Ltd. BaFin ordered the company to transfer the remaining bank deposits back to the investors who had made payments to IMS.
According to BaFin, between December 2015 and December 2016, IMS International Marketing Services GmbH took in, in total, approximately €360 million on behalf of Onecoin Ltd. Approximately 29 million euros of this were found in the then frozen accounts. The company fed the monies on behalf of Onecoin Ltd to third parties such as the Fenero Hedge Funds.
Money-Laundering via the Bank of Ireland
After receiving the above-described deposits sourced from OneCoin Ltd., between approximately August 2016 and February 2017, the Fenero Hedge Fund accounts transferred approximately €273 million to three accounts held at Bank of Ireland in the Republic of Ireland. Each of the bank accounts was held by “Fenero Equity Investments Ireland.” Bank records for these accounts show that Mark S. Scott controlled each of these accounts.
The U.S. authorities traced approximately €185 million in funds derived from the OneCoin scheme laundered through Fenero Hedge Funds and the Bank of Ireland to Amer Abdulaiziz’s Phoenix Fund Investments in the United Arab Emirates (UAE). Between Feb 2017 and April 2017 the Fenero Hedge Funds sent more than 10 wire transfers totaling E185 million to the Phoenix Funds Investment bank accounts with a bank in the UAE.
Mark S. Scott and the OneCoin millions
The U.S. authorities uncovered that between approximately February and April 2016, Mark S. Scott received into a United States bank account held in his name, three wires totaling approximately $1 million from the IMS companies. I have further learned that at least $15.5 million of the original €364 million and $10 million sent to the Fenero Hedge Fund accounts was remitted either directly, or indirectly through intermediary accounts, to bank accounts in the United States held in the name of Scott or his MSS International Consultants LLC. Many of these transfers involved accounts held in the name of the US attorney Nicole J. Huesmann who allegedly has assisted Scott in repatriating OneCoin fraud proceeds for Scott’s personal use.
Scott’ used the monies he received from the Fenero Hedge Fund accounts for personal expenses and to fund large luxury purchases, the U.S. authorities found.