I caught a lot of heat in January of 2012 when I claimed the dinar was a scam. People thought I fell off the deep end. I invested in the Iraqi dinar and then I talked about it on this blog. I strongly supported it until my study of currency revealed a whole different story. I told everyone to sell their dinar as soon as they could. I said that if Iraq redenominates there will be no dealers around to provide any liquidity. I said that this so-called dinar investment is really a scam. The dinar is a game of musical chairs. Anyone caught holding dinar when this thing finishes will be the people who lose everything.
Now it seems as though the whole so-called investment is crashing down all around us. Shortly after Tony goes to jail (see last post) we witness the government action of raiding the offices belonging to Sterling Currency Group aka Dinar Banker. They also seized assets such as aircraft, and expensive luxury cars. This happened on June 3rd, just 6 days after Tony was sentenced. Check out the raids with the following links.
Even though the dinar community is surprised by this it comes as no real surprise to me. As I watch the traffic from this site I see that the dinar is big on an international level too. Just last month alone I got traffic from United States, Canada, Malaysia, Taiwan, just to name a few. I also get a lot of traffic from Puerto Rico. The dinar is huge there. Now it seems that some dinar business in Puerto Rico was raided too.
“The raid conducted by the Federal Bureau of Investigation during the morning in a business that sells dinars, located on Roosevelt, Hato Rey Avenue, is related to a fraud investigation,”
“FBI agents, accompanied by the IRS and police officers in Puerto Rico, arrived at about 7:00 am at the offices of Internet Management Mendez. Quinones explained that could be there until noon.
He said that, in general, in raids seeking documents and computers.”
Today I have been reading through the civil complaint for the government’s case against Sterling Currency Group. I can tell you that those boys are in a bit of trouble. Let me quote directly from the civil complaint so we all know the people involved.
“This Complaint seeks forfeiture of the below-listed properties to the United States as proceeds of specified unlawful activities and properties involved in money laundering offenses of Sterling Currency Group, LLC (“Sterling”); Sterling Online Processing Services, LLC (Sterling Online); GID Partners, LLC (GID); Alex Capital Holdings LLC (Alex); James Shaw (J.Shaw); Carole Laurette Shaw (C.Shaw); Tyson Rhame (Rhame); Frank Bell (Bell), and other entities controlled by these same businesses and individuals that have used the facilities of interstate commerce in a scheme to defraud investors in the Iraqi dinar by publishing and disseminating false information about the viability of that currency as an investment:”
Wow the dinar as an investment is actually false? Of course this is according to the complaint. What does the Department Of Justice really know about the dinar anyway? (Sarcasm) Now that we know who all the players are, the civil complaint proceeds to list the assets that the government will seize. Some of these include various real estate properties, luxury cars, and even three airplanes. I will quote directly from the civil complaint again,
“Based on the evidence described below, the Defendant Properties are subject to forfeiture to the United States pursuant to 18 U.S.C. § 981(a)(1)(C) as proceeds of specified unlawful activity traceable directly and indirectly to violations of 18 U.S.C. §§ 1341, 1343, 1349, 1956, and 1957. 3.Additionally, the Defendant Properties are subject to forfeiture to the United States pursuant to 18 U.S.C. § 981(a)(1)(A) as property involved in money laundering offenses in violation of 18 U.S.C. §§ 1956 and 1957.”
“Since at least 2004, Sterling Currency Group, LLC (“Sterling”), an Atlanta, Georgia-based business that also does business under the name Dinar Banker, has become one of the largest sellers of Iraqi dinar in the United States. While Sterling also offers the sale of what its website calls “other exotic currencies,” including the Vietnamese Dong, Indonesian Rupiah, Afghani, and Chinese Yuan, the bulk of Sterling’s business comes from the sale of the Iraqi dinar.”
“8. Sterling is one of several money service businesses in the United States that purchases the Iraqi dinar abroad for sale to customers in the United States and Canada.”
“9.Sterling purchases its inventory of dinar notes from exchangers in the Middle East, transports the notes in bulk to the United States via commercial carrier, retrieves the notes from Hartsfield Jackson International Airport, and trucks them Case 1:15-cv-02032-LMM Document 2 Filed 06/09/15 Page 14 of 48”
“15 for storage to a business location in Atlanta, Georgia, where they remain available to fill customer orders placed on its websites (initially at http://www.dinarbanker.com and now at http://www.sterlingcurrencygroup.com) and over the telephone.”
“10.Sterling operates in partnership with Sterling Online Processing (“Sterling Online”), which provides administrative services for Sterling, as well as GID Partners (“GID Partners”), which is an Iraqi dinar exchanger purchased by Sterling.”
“Sterling’s success is at least partially attributable to its use of the facilities of interstate commerce, including wire communications, both directly and indirectly, to disseminate false and misleading information about the possibility of a revaluation of the dinar and to steer customers toward choosing Sterling over its competitors.”
“16.The revaluation (or simply, “RV”) theory has spread throughout the Internet and is promoted by a variety of internet blogs and individuals who hold themselves out to be currency experts or “dinar gurus.” According to the RV theory, the dinar will experience an abrupt, exponential rise in value against the U.S. dollar and hence yield enormous profits for dinar holders.”
“17.An individual who worked for Sterling from approximately 2013 to 2015 confirmed that Bell at one point told customer service center representatives in a meeting that there would never be an Iraqi dinar revaluation. Bell instructed the representatives not to tell callers that the revaluation will never occur but to tell the callers to do their own research”
This is the reason I said that dealers would not be around in the event of a redenomination. If certain dealers are breaking the law, and they are, then other dealers will close up shop as well due to liability issues in the event of a redenomination. The civil law suits will be enough to cause everyone to get out. Not just the civil complaints brought from The Department Of Justice, but the civil suits brought through private parties as well.
Perhaps the saddest part of the whole thing is that these people knew they were breaking the law. Email communications between the people at Sterling bring this out and they are even listed in the complaint. The people at Sterling knew that Iraq would not revalue and they knew this as early as 2010. Not only did they continue to sell dinar to people who thought there would be a revalue, but they had pumpers on the payroll to promote that idea! Let us look at some of the emails listed in the civil complaint.
“Email communications between Rhame, J.Shaw, C.Shaw, and Bell confirm that these individuals know that the concept of the dinar revaluation is a scam.
‘On November 3, 2010, J.Shaw sent an email to Rhame entitled, “Discussion Point,” an email that he also forwarded to C.Shaw, which read, in part: Ty, The point of my call was not to talk about net worth. We have a business that I valued at $8-10 million in that formula (SCG). Laurette and I do not think about how much is hers and mine as you do in your relationship (like I should give her 99% of profits). We are 50-50 partners on everything and if we ever split up we would divide all assets as such. She has lately been very nervous and was crying last night because she knows we are running an illegal operation. The point is that her [sic] and I have worked way too hard in life for us to risk everything based on your belief (even if I agree with you) that the Iraqi dinar will not RV and it is ok to make millions of dollars in false promises to our customers. Not only are we risking everything we own, we are risking serious jail time as promoters of a ponzi scheme. . . Jim”
“Additionally, a March 22, 2011, set of emails further shows that Rhame and C.Shaw were aware of Sterling’s wrongdoing. a.Specifically, on that date, Rhame sent C.Shaw an email that copied J.Shaw with the subject, “Comments related to AMENDED Operating Agreement” in which he asserted, “This amendment is complete bullshit written for the purpose of obtaining banking. Jim and Ty are operation [sic] under the original partnership agreement. We are 50% partners and his ass will go to prison if mine does.” b.Thereafter, C.Shaw replied, “and won’t your asses have an interesting time there. NOT.”
“Sterling’s unlawful business practices fall into at least two categories. First, Sterling unlawfully used at least one revaluation promoter to disseminate false Case 1:15-cv-02032-LMM Document 2 Filed 06/09/15 Page 19 of 48”
“20 information and steer prospective dinar purchasers toward Sterling. Second, Sterling used telephone conversations and its own web site to make false representations and false promises to its customers.”
“Sterling has knowingly benefitted from false representations made by web sites and blogs, including “The GET Team.”
“24. The GET Team, which is led by an individual known as TerryK, runs an internet chat room and weekly conference calls in which information about the Iraqi dinar is discussed. During those chats and conferences, TerryK spreads false information suggesting that the revaluation is about to occur.”
“25.In a September 13, 2010, email, TerryK introduced himself to Rhame: Ty, My name is TerryK, I own the worlds [sic] largest Dinar web site going….we have currently 7200 members and currently we hold two calls a week with about 1500 on the call and 100’s if not 1,000’s on skype listening in…what I would like to do is open a discussion with you and maybe have you on a call this coming wed night. It starts at 9pm and thought maybe 10-15 min on how you operate, how to cash in with your firm and then a question and answers session….let me know via email [sic]. terryk.”
“26.Thereafter, beginning at least as early as 2011, Sterling began making monthly payments in the amount of $4,000 to TerryK. In total, Sterling has paid TerryK more than $150,000 since 2011.”
“27.Since TerryK’s 2010 email, Sterling employees, including Bell and Rhame, have routinely spoken on the GET Team’s weekly conference calls. For example,”
“28.In the GET Team chat room and during the weekly conference calls, TerryK also passed along false information purportedly received from sources about the revaluation of the Iraqi dinar and other currencies (such as the Vietnamese dong).
a.For example, on the January 8, 2014, conference call, TerryK stated that a source at Wells Fargo said that it would take at most 10 to 15 minutes to process the exchange of Iraqi dinar.
b.Additionally, on the March 12, 2014, conference call, TerryK stated that a source at Wells Fargo had told him “it” was supposed to happen but that the time kept changing.
c.Likewise, on the April 16, 2014, conference call, TerryK said that he had heard from the “UST,” a reference to the U.S. Department of Treasury, that the rate was good and that everything would be released that week.”
“29.On June 3, 2015, TerryK acknowledged during an interview with the Federal Bureau of Investigation (FBI) that he had fabricated source information on GET Team online postings and conference calls.”
“30.In fact, the U.S. Department of Treasury is not preparing and has never prepared for an Iraqi dinar revaluation. 31.Similarly, Wells Fargo does not trade in the Iraqi dinar and also warns its customers not to invest in it. In fact, a publicly available Well Fargo Advisors Memorandum dated March 10, 2014, states that Wells Fargo is not preparing for an Iraqi dinar revaluation and has no plans whatsoever to exchange the Iraqi dinar. 32.Moreover, a November 7, 2011, email exchange between TerryK, Rhame and Bell confirms that TerryK and Sterling have sought to keep the specific nature of their relationship secret. a.On that date, TerryK sent an email to Rhame and Bell that read: “I want to make sure that our arrangement is between us and no one else…As no one else needs to know about our arrangement… Please confirm… Thanks for all you guys do... [sic]” b.Bell’s reply, sent that same day, read, “Absolutely noone [sic] but us [sic].” 33.Although on May 28, 2015, Bell represented to the FBI during an interview that Sterling maintains a “firewall” between itself and revaluation promoters, email records belie his assertions. a.For instance, on May 2, 2012, TerryK sent an email to Bell that read as follows: Case 1:15-cv-02032-LMM Document 2 Filed 06/09/15 Page 22 of 48
23 You should have gotten a lot of business on the reserves the past week, been pushing it hard on the site bro…..make sure TY is not selling dinar from the middle table that one is mine.….[sic]” Bell’s reply, sent the following day, read, “TK, Will do, thanks for your support.” b.Likewise, on March 11, 2013, TerryK sent Bell an email that read, FYI Received payment today, thanks for following up..What else can I do to help sales for your team? Just let me know buddy, I will be in the room later today to get some things moving as well [sic]. c.Also, on July 22, 2013, TerryK sent Bell an email reading as follows: Frank, please find attached the banner invoice for the month of August 2013, I trust things are going well, as we keep promoting the heck out of Sterling.. [sic] If there is anything you need let me know.”
“34.On June 3, 2015, Bell acknowledged to FBI agents that Sterling should not have continued to do business with the dinar promoters.”
You can read the civil complaint in full by clicking on the link below
Channel 2 goes into further details about this case. Check out the next link
As usual, I have a few observations. The first one is the fact that this is just a civil complaint from the Department Of justice. I strongly suspect that criminal charges may soon follow.
The second observation is that the government has finally acknowledged that the revalue is not going to happen and marketing the dinar on such a notion is not only untruthful, it is outright fraud. So much so that the government has been keeping intimate details on email records from various dealers at the very least since 2010. If I was a dealer and I had pumpers on the payroll I would be very worried at this point. Because more than likely the government is watching those dealers too and it decided to move against one of the biggest ones first.
My third observation is that the government moved against Puerto Rico and Sterling at roughly the same time. Although the civil complaint is dated the 9th. The raid from channel 2 news has a date of June 3rd. That is the same day that the government moved on Puerto Rico. Both raids happened at 7 am. Both raids involved the IRS and the FBI. So my question is obvious. Are these two Raids connected? Did SCG have any involvement with the Puerto Rico dinar business? I am not saying that they did and I do not know, but this is one hell of a coincidence!
My fourth observation is that this was just a few days after Tony’s sentence. Tony once said that he worked for Sterling on a conference call. I heard it myself. Another point is that his reduced sentence was very light for a plea bargain. He was looking at about 21 years for each count and he had 4 counts. He was also looking at a 250,000 dollar fine for each count. His sentence was greatly reduced. They dismissed 3 counts and only convicted him on 1 count. He has no fines to pay, and he is only serving 1 year and one day in jail. This is according to his sentence. Look at the last post to verify. This reduction is a lot more than what you would normally get in any plea bargain deal.
Is the reason for this due to information Tony provided about Sterling Currency Group? He had a banner for Sterling on his site. In the end I don’t know for sure, but consider the timing of the events and it would be easy to conclude that this goes beyond coincidence. Notice that Bell said “dinar promoters” as in more than one? In the end I really don’t know for sure.
When the BH group went down it was 6 months before we knew anything about what was going on. I think as time goes on more details will be revealed.
My fifth and final observation is that SCG is not the only dinar dealer that has paid gurus. I am not going to name any names but I know there are others as well. Will the same thing happen to them? Is Sterling the beginning of a process that will shut down dealers and thus remove liquidity for the dinar? Although I will say that I don’t keep tabs on every dealer, and even though there may actually be some honest ones out there, I know of a few that are not. They have pumpers too and those dealers know who they are. I would be worried if I were them.
I was telling the truth all along. The dinar investment is a scam, dealers won’t be around if Iraq redenominates, there is 30 trillion in dinar sitting outside of Iraq’s borders, this current dinar scam bears many similarities to the same scam Iraq did with the Swiss dinar, dinar has been exported all over the world in many different countries, and Iraq was exporting their currency which caused their reserves to grow at an abnormal rate!
When you stand back and look at the big picture you’ve got to ask yourself one question. Why did it take the government so long to do anything about this scam? Well now it looks like they have been building cases the whole time! Just how many cases has yet to be determined. In the end justice may come slowly, but when it finally arrives it will be quick and severe.
Just a final note to all you fake dinar pumpers who pretend to be Christians so you can take credit for boosting your sales. I have heard you pray on conference calls in the name of the Lord and I have heard you ask for God’s blessings when all the while you knew this thing was a scam! I caught you in lies! You targeted the Christian community in an effort to put money in your own pocket. Your judgement day is approaching too! Let me share one scripture with you.
Galatians 6:7-9King James Version (KJV)
7 Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.
8 For he that soweth to his flesh shall of the flesh reap corruption; but he that soweth to the Spirit shall of the Spirit reap life everlasting.
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