financial crime investigation question

QUESTION 2 15 points Save Answer In June 2020, a man in California was indicted on fraud charges alleging that he solicited people around the nation to invest in companies that would market pills he claimed would prevent coronavirus infections and produce an injectable cure for those already suffering from COVID-19. The defendant falsely claimed to have developed a cure for the COVID-19 virus and a treatment that prevented a person from being infected by the a COVID-19 virus through text messages, videos, and statements sent to potential investors and posted on the internet. The indictment alleges that he fraudulently solicited investments in two companies with a series of false promises, including miraculous results from the prevention product and the cure, and risk-free and 100 percent guaranteed enormous returns on investments. To bolster the claims, the defendant falsely represented that an unnamed party in Dubai had offered to purchase the two companies for USD 10 billion, claiming this offer would secure the victim-Investors' Investments in the two companies, and that he had secured funding from seven Investors who had each already invested betweon USD 750 000 and USD 1 000 000. The FBI arrested the defendant in March 2020 after he delivered pills - purportedly the treatment that prevents coronavirus infection to an undercover agent posing as an investor. He has been charged with 11 counts of wire fraud stemming from solicitations he allegedly made to potential investors in Nevada, New York, Texas and Colorado. Two of the charges relate to communiations with the undercover agent Note: In the United States, an indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. (Source: Department of Justice, United States of America (2020) Answer the following questions for Caso 2 - 15 marks 1. What are the red flags in this case? 2. What stops thould investors have taken to validate the credibility of the claims made by this perpetrator? 3. What role would a Financial Institution play in this case? For the toolbar, press ALT+F10 (PC) or ALT FN+F10 (Mac), QUESTION 2 15 points Save Answer In June 2020, a man in California was indicted on fraud charges alleging that he solicited people around the nation to invest in companies that would market pills he claimed would prevent coronavirus infections and produce an injectable cure for those already suffering from COVID-19. The defendant falsely claimed to have developed a cure for the COVID-19 virus and a treatment that prevented a person from being infected by the a COVID-19 virus through text messages, videos, and statements sent to potential investors and posted on the internet. The indictment alleges that he fraudulently solicited investments in two companies with a series of false promises, including miraculous results from the prevention product and the cure, and risk-free and 100 percent guaranteed enormous returns on investments. To bolster the claims, the defendant falsely represented that an unnamed party in Dubai had offered to purchase the two companies for USD 10 billion, claiming this offer would secure the victim-Investors' Investments in the two companies, and that he had secured funding from seven Investors who had each already invested betweon USD 750 000 and USD 1 000 000. The FBI arrested the defendant in March 2020 after he delivered pills - purportedly the treatment that prevents coronavirus infection to an undercover agent posing as an investor. He has been charged with 11 counts of wire fraud stemming from solicitations he allegedly made to potential investors in Nevada, New York, Texas and Colorado. Two of the charges relate to communiations with the undercover agent Note: In the United States, an indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. (Source: Department of Justice, United States of America (2020) Answer the following questions for Caso 2 - 15 marks 1. What are the red flags in this case? 2. What stops thould investors have taken to validate the credibility of the claims made by this perpetrator? 3. What role would a Financial Institution play in this case? For the toolbar, press ALT+F10 (PC) or ALT FN+F10 (Mac)