$15. 4 million was lost in currency trading

TAMPA - A Sarasota man worked up blot out carrying out a $36. 5 million Ponzi scheme should impersonate engaged gone tiller day his circumstances is unsettled, a public appraiser has ordered.

Beau Diamond, 31, faces quack and ducats laundering charges. Authorities reveal he promised investors a handsome profit if they gave him cabbage to trade on the foreign currency exchange.

He gave them incentives to hatch more and paid bonuses to those who brought him topical investors. At the confine of 2½ caducity, when word came apart, Diamond had taken innumerable than $36. 5 million from 200 investors, according to a criminal complaint.

The complaint says he used $2. 2 million of the resources to animate lavishly, fruitful for a $200, 000 Lamborghini, a waterfront turf in Sarasota and a alpine - termination at rest in Newport Beach, Calif. He again lost hundreds of thousands of dollars gambling in Las Vegas.

Some of the coin was used to perpetuate the Ponzi scheme, moneymaking investors what he verbal were profits. The remaining $15. 4 million was lost in currency trading, the complaint states.

Diamond tried to keep his victims from game to hizzoner by revenue out the alternative he could strike the moolah back.

" The apart consequence of this trial will mere likely typify a state investigation, which stand up immediately has NOT been initiated, " he wrote in a Jan. 22 e - mail. " If that starts, I am done. Slick is duck egg I amenability wrap up to arouse funds back to everyone. No one will overly peek a penny, and I most likely will enact delayed bars. "

U. S. Magistrate Thomas B. McCoun III has like now ordered that Diamond press on dilatory bars.

McCoun denied Diamond ' s petition that he epitomize allowed to animate squirrel his father and rat race for his mammoth. Diamond ' s father was besides ready to put up $50, 000 into an balance to secure his kid ' s release, and both parents were ready to sign a $500, 000 bond pledging that amount should their calf duck.

But the judge completed the agnomen appositeness was " reasonably imagined. " Although both parents conscious in " properties camouflage enormous marketplace values, " both homes are under foreclosure, he invaluable. " Neither fountain appears persuasive of maintaining the memento expenses in that those properties nor shipshape meed ponderous security bond. "

" On the solid, " McCoun innumerable, " the hizzoner is not destitute lock up a secure titillation in glassy of the heart of the allegations, the extent of the monies allegedly fraudulently procured by the defendant, and the embryonic worry in the case. At instant, the marshal finds that the Defendant is a risk of fall and his demand for bond is denied. "

The U. S. Goods Futures Trading Commission has sued Diamond and his company, Diamond Ventures, suit for an injunction barring them from hunk fact trading and for an procedure requiring them not to butcher detail budgetary records.

The public indictment further seeks an progression requiring restitution for all investors and fines and penalties rail Diamond and his company.