A joint investigation carried out by several European authorities, with the support of Europol and Eurojust, has concluded with the arrest of nine suspects in the case of fraud involving investments in cannabis plants "Juicy fields". The court estimates that the total damage from false investments in the announced crowdsourcing platform for the cultivation of cannabis is €645 million, but "the real and undeclared damage could be significantly higher". In the case of Juicy Fields More than 186,000 people were affected.
The police operation was carried out on April 11, 2024, and police officers from several European countries took part in it. More than 400 agents from 11 countries executed nine arrest warrants and conducted 38 house searches. During the day of investigation and action, €4,700,000 in bank accounts, €1,515,000 in cryptocurrencies, €106,000 in cash and €2,600,000 in real estate were seized or frozen. Authorities also seized several luxury cars, artwork, cash and various luxury items, as well as a large number of electronic devices and documents.
The court estimates that the total damage from false investments in the announced crowdsourcing platform for the cultivation of cannabis "is €645 million, but the real and undeclared damage could be significantly higher".
In total, about 550,000 participants around the world, most of whom are European citizens, have been registered as online investors. Using bank transfers or cryptocurrencies, about 186.000 participants actually transferred funds to a complex Ponzi scheme that operated from the beginning of 2020 until July 2022.
The suspects, who are mostly Russian, as
well as Dutch, German, Italian, Latvian, Maltese, Poles, Jordanians, North Americans and Venezuelans, used social media ads to attract victims to their websites. These platforms offered promising crowdsourcing investment opportunities in the cultivation, harvesting, and distribution of cannabis plants for medical use.
With a minimum initial investment of at least €50 in so-called "e-cultivation", investors were promised that they would be associated with medical cannabis producers. After buying the cannabis plant, the platform assured investors – also known as e-cultivators – that they would soon be able to make high profits by selling the plants to authorized buyers. Although the company has promised annual profits of 100% or more, it has not disclosed exactly how it will achieve this, much less how it will be able to guarantee it.
According to a press release from Europol, "the legalisation of cannabis cultivation or the extension of the permissible THC content in cannabis products for personal, recreational and therapeutic purposes is an important topic of public debate in the EU. These discussions are further fueled by the fact that cannabis is one of the most consumed illicit substances both in the European Union and around the world. As seen in other contexts, criminal networks are particularly adept at applying new narratives to existing criminal practices, especially during periods of changes in the regulatory framework, which could open a window of opportunity for fraudsters to advertise low-risk, high-reward investment opportunities."
Classic Ponzi Scheme "Too Good to Be True"
A Ponzi scheme is a type of investment scam in which criminals promise investors high returns with minimal or no risk. Instead of actually generating profits through legitimate trading activities, criminals use the money of new investors to pay returns to previous investors. This creates the illusion of a profitable company, but in reality, the scheme collapses when there are not enough new investors to support the payouts, causing most investors to make losses.
For example, the average investor – even the cautious one – made an initial investment of €50 and soon received a payout that doubled his money. Motivated by such financial gains, many investors increased their bets and paid hundreds, thousands, or in many cases, even tens of thousands of euros. The platform was credible because it was not only present in the digital world, but also maintained the image of a reliable legal business structure, having physical offices, employees, and representation at cannabis industry events. Initially, more than 500,000 electronic manufacturers made a profit on their investments. However, in July 2022, the criminals behind this scheme suddenly deleted the companies profiles from social networks and deprived users of the ability to log into their accounts, thereby freezing the withdrawal of money.
The widespread dissemination of police statements across Europe prompted Europol to initiate a coordinated approach to investigations involving several EU and non-EU countries. After law enforcement focused on JuicyFields and related investment platforms, a joint investigation team was set up at Eurojust, led by the German and Spanish police, the French Gendarmerie, and with the support of Europol, the UK's National Crime Agency and other law enforcement agencies from the UK and other EU member states.
Field operations were carried out by:
Germany: Berlin Public Prosecutor's Office; Criminal Investigation Office of Berlin (LKA)
Spain: Central Investigating Judge No. 6 in the National Auditorium; National Police (UDEF Central Economic Crime Brigade, Financial Fraud Unit)
France: Paris Public Prosecutor's Office JUNALCO (National Jurisdiction for Combating Organized Crime); National Gendarmerie (Research Unit in Rennes)
Estonia: Office of the Prosecutor General; Police and Border Guard
Board of Latvia: Prosecutor General; Department of International Cooperation and Department for the Fight against Economic Crime of the Central Criminal Police Directorate of the Italian State Police
: Postal Service of the National Police - Cyber Security Operations Unit, Macerata, and Cyber Security Operations Centre Marche
Malta: Malta Police Force - OtdeIn Poland, there
are Prosecutor's offices in Jelena Góra, Lublin, Warsaw, Prague and Wroclaw; Central Directorate for Combating Cybercrime
Portugal: Lisbon Central Public Prosecutor's Office (DCIAP); Judicial Police
UK: National Crime
Agency After carefully collecting digital evidence, investigators created a collaborative picture that allowed police across Europe to identify suspects and launch a wave of arrests.
One of the main important targets of this investigation was traced to a place of residence in the Dominican Republic. A Russian citizen suspected of being one of the main organizers of the fraudulent scheme was searched by the Dominican Republic authorities in the house where he lived, and agents of the Spanish investigation team, together with a Europol specialist, were sent to the site to assist in coordination.
Europol has supported this large-scale cross-border investigation from the outset, playing a leading role in operational coordination and providing specialised analytical support. In addition, Europol shared the results of financial investigations, as well as other information, with the countries involved. On the day of the action, Europol sent agents with mobile offices to various parts of the world. Eurojust has managed a focal point made up of senior police officials from various investigative bodies, prosecutors and Europol staff to help coordinate legal enforcement measures across multiple countries and time zones.
• Source: https://www.europol.europa.eu/media...llion-juicyfields-investment-scam-case#empact
• Source: https://www.eurojust.europa.eu/news...llion-medicinal-cannabis-plants-across-europe
The text was originally written in Portuguese and translated into English and other languages using an automatic translator. Some words may differ from the original
• Source: https://cannareporter.eu/en/2024/04...ustice-burla-ultrapassa-645-milhoes-de-euros/
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Spain has achieved the extradition of a Russian who collected 645 million euros for cannabis
The authorities of the Dominican Republic extradite Russian citizen Sergei Berezin to Spain. According to the investigation, he led an international group that, through the Juicy Fields platform, attracted investors to grow medical cannabis. The money was supposed to go to small farmers, and then return with a profit from the sale of hemp. However, in reality, the newly raised funds were used to pay previous investors. Law enforcement agencies saw signs of a pyramid in this, and the damage was estimated at 645 million euros.
The police operation was carried out on April 11, 2024, and police officers from several European countries took part in it. More than 400 agents from 11 countries executed nine arrest warrants and conducted 38 house searches. During the day of investigation and action, €4,700,000 in bank accounts, €1,515,000 in cryptocurrencies, €106,000 in cash and €2,600,000 in real estate were seized or frozen. Authorities also seized several luxury cars, artwork, cash and various luxury items, as well as a large number of electronic devices and documents.
The court estimates that the total damage from false investments in the announced crowdsourcing platform for the cultivation of cannabis "is €645 million, but the real and undeclared damage could be significantly higher".
In total, about 550,000 participants around the world, most of whom are European citizens, have been registered as online investors. Using bank transfers or cryptocurrencies, about 186.000 participants actually transferred funds to a complex Ponzi scheme that operated from the beginning of 2020 until July 2022.
The suspects, who are mostly Russian, as
well as Dutch, German, Italian, Latvian, Maltese, Poles, Jordanians, North Americans and Venezuelans, used social media ads to attract victims to their websites. These platforms offered promising crowdsourcing investment opportunities in the cultivation, harvesting, and distribution of cannabis plants for medical use.
With a minimum initial investment of at least €50 in so-called "e-cultivation", investors were promised that they would be associated with medical cannabis producers. After buying the cannabis plant, the platform assured investors – also known as e-cultivators – that they would soon be able to make high profits by selling the plants to authorized buyers. Although the company has promised annual profits of 100% or more, it has not disclosed exactly how it will achieve this, much less how it will be able to guarantee it.
According to a press release from Europol, "the legalisation of cannabis cultivation or the extension of the permissible THC content in cannabis products for personal, recreational and therapeutic purposes is an important topic of public debate in the EU. These discussions are further fueled by the fact that cannabis is one of the most consumed illicit substances both in the European Union and around the world. As seen in other contexts, criminal networks are particularly adept at applying new narratives to existing criminal practices, especially during periods of changes in the regulatory framework, which could open a window of opportunity for fraudsters to advertise low-risk, high-reward investment opportunities."
Classic Ponzi Scheme "Too Good to Be True"
A Ponzi scheme is a type of investment scam in which criminals promise investors high returns with minimal or no risk. Instead of actually generating profits through legitimate trading activities, criminals use the money of new investors to pay returns to previous investors. This creates the illusion of a profitable company, but in reality, the scheme collapses when there are not enough new investors to support the payouts, causing most investors to make losses.
For example, the average investor – even the cautious one – made an initial investment of €50 and soon received a payout that doubled his money. Motivated by such financial gains, many investors increased their bets and paid hundreds, thousands, or in many cases, even tens of thousands of euros. The platform was credible because it was not only present in the digital world, but also maintained the image of a reliable legal business structure, having physical offices, employees, and representation at cannabis industry events. Initially, more than 500,000 electronic manufacturers made a profit on their investments. However, in July 2022, the criminals behind this scheme suddenly deleted the companies profiles from social networks and deprived users of the ability to log into their accounts, thereby freezing the withdrawal of money.
The widespread dissemination of police statements across Europe prompted Europol to initiate a coordinated approach to investigations involving several EU and non-EU countries. After law enforcement focused on JuicyFields and related investment platforms, a joint investigation team was set up at Eurojust, led by the German and Spanish police, the French Gendarmerie, and with the support of Europol, the UK's National Crime Agency and other law enforcement agencies from the UK and other EU member states.
Field operations were carried out by:
Germany: Berlin Public Prosecutor's Office; Criminal Investigation Office of Berlin (LKA)
Spain: Central Investigating Judge No. 6 in the National Auditorium; National Police (UDEF Central Economic Crime Brigade, Financial Fraud Unit)
France: Paris Public Prosecutor's Office JUNALCO (National Jurisdiction for Combating Organized Crime); National Gendarmerie (Research Unit in Rennes)
Estonia: Office of the Prosecutor General; Police and Border Guard
Board of Latvia: Prosecutor General; Department of International Cooperation and Department for the Fight against Economic Crime of the Central Criminal Police Directorate of the Italian State Police
: Postal Service of the National Police - Cyber Security Operations Unit, Macerata, and Cyber Security Operations Centre Marche
Malta: Malta Police Force - OtdeIn Poland, there
are Prosecutor's offices in Jelena Góra, Lublin, Warsaw, Prague and Wroclaw; Central Directorate for Combating Cybercrime
Portugal: Lisbon Central Public Prosecutor's Office (DCIAP); Judicial Police
UK: National Crime
Agency After carefully collecting digital evidence, investigators created a collaborative picture that allowed police across Europe to identify suspects and launch a wave of arrests.
One of the main important targets of this investigation was traced to a place of residence in the Dominican Republic. A Russian citizen suspected of being one of the main organizers of the fraudulent scheme was searched by the Dominican Republic authorities in the house where he lived, and agents of the Spanish investigation team, together with a Europol specialist, were sent to the site to assist in coordination.
Europol has supported this large-scale cross-border investigation from the outset, playing a leading role in operational coordination and providing specialised analytical support. In addition, Europol shared the results of financial investigations, as well as other information, with the countries involved. On the day of the action, Europol sent agents with mobile offices to various parts of the world. Eurojust has managed a focal point made up of senior police officials from various investigative bodies, prosecutors and Europol staff to help coordinate legal enforcement measures across multiple countries and time zones.
• Source: https://www.europol.europa.eu/media...llion-juicyfields-investment-scam-case#empact
• Source: https://www.eurojust.europa.eu/news...llion-medicinal-cannabis-plants-across-europe
The text was originally written in Portuguese and translated into English and other languages using an automatic translator. Some words may differ from the original
• Source: https://cannareporter.eu/en/2024/04...ustice-burla-ultrapassa-645-milhoes-de-euros/
----------
Spain has achieved the extradition of a Russian who collected 645 million euros for cannabis
The authorities of the Dominican Republic extradite Russian citizen Sergei Berezin to Spain. According to the investigation, he led an international group that, through the Juicy Fields platform, attracted investors to grow medical cannabis. The money was supposed to go to small farmers, and then return with a profit from the sale of hemp. However, in reality, the newly raised funds were used to pay previous investors. Law enforcement agencies saw signs of a pyramid in this, and the damage was estimated at 645 million euros.
