Black Diamond Capital Solutions, another Ponzi

[Scam Investigations Committee]

NOTE: There are a large number of companies with “Black Diamond Capital” and “Black Diamond Holdings” in their names. This article refers exclusively to Black Diamond companies associated with Keith Simmons of Jefferson North Carolina.

The initial criminal charges against Keith Simmons, owner of Black Diamond Capital Solutions, LLC and several other companies included money laundering, wire fraud and conspiracy. Now the FBI has given out additional information. They say that the alleged forex investment plan was also a Ponzi scheme. It looks like about $35 million was raised and around 20 million was used to pay profits. The rest looks like it was spent on other investments, side businesses, office expenses and plenty of nice stuff for Mr. Simmons.

Near the end of 2009, the flow of capital must have been falling off. Employees of the company started not getting paid regularly. The arrest happened about a week before Christmas. Newpaper reports indicate that Simmons may have been planning to flee, based on a copy of a book titled How to Disappear Completely and Never Be Found that was collected by authorities searching his home and offices.

Victims of this scam are reported from all around the US. If you had money with this company, contact your local FBI Office as soon as possible.

We haven't verified this connection yet. A company known as Affluent Profusion lists “two independent Forex Trading Advisors, Black Diamond Holdings, LLC and MexGroup, formerly MexBank S.A. De C.V” as trading partners on its website. The last we heard, MexGroup is tied up in a legal battle with AC-Markets with mutual scam accusations being exchanged between the two companies. For the sake of anyone who has invested with Affluent Profusion, we hope that the Black Diamond company they are involved with isn't related to any of the companies owned by Keith Simmons.

News stories on Black Diamond...

Keith Simmons arrested

Another report of the arrest of Keith Simmons

Black Diamond reported to be a Ponzi

Another Ponzi report on Black Diamond

Employees tell of pay problems


Useful information on managed accounts and how to avoid Ponzi schemes here at the FPA...

https://www.forexpeacearmy.com/fore...ose-all-your-money-managed-forex-account.html

https://www.forexpeacearmy.com/fore...959-ponzi-schemes-hyips-free-money-traps.html

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[Pharaoh]

I wonder if that was that How to Disappear Completely and Never Be Found by Doug Richmond (1997) or by Sara Nickerson (2004).

Either way, I guess he should have gotten a book on speed reading first.

 

[ernest8fingers]

I guess Keith is now going to "disappear" under another federal inmate. Federal prison are some of the WORST in this country and this little pasty face ***** will have 20 million dollars worth of prison sex to remember his foul deeds. Just another confirmation of "there really is a God". We should open a new thread (or section) under the Scam section with all the faces of these bastards with an x thru them after they are caught? BTW-all these books advocate living in the woods indefinitely. Fun the 1st week maybe?

 

[Mostanmax]

Another scammer get his just reward. I hope he enjoys tossing salad amongst other newfound recreational activities...!

 

[Forexwatchman]

And here we go where the greed over powers reason, he got 35 million out of it and it still wasn't enough for him to quit before it was too late. I'd love to see where the money went.

 

[amirulamar]

Another SCAM..

Another Scam just get cough, but its was too late...

 

[Fins]

And here we go where the greed over powers reason, he got 35 million out of it and it still wasn't enough for him to quit before it was too late. I'd love to see where the money went.

While there was greed, there apparently wasnt any brains. The best I can figure (and several others I have talked to) he spent it all.

$19.9 mill on paying back investors

A little over $2 mill on starting and running legit (but not profitable) companies

about $2.5 mill on advertising all his companies

$4.3 mill on real estate that he bought and never sold (but feds have valued
all property at about $2.5 mill so he way over paid) If you ever get a chance to see his million dollar condo in West Jefferson NC it worth the tour.

$2 mill on construction costs for offices

$900k for decorating and design

$800k that looks to have gone to him for personal expense

$200k on travel, entertainment (including strippers for his staff when traveling; especially for the young girls on the staff), limos, and chartered aircraft

Oh, and he had an office full of early 20's girls that had very little education and he bought them all boob jobs.

btw, theres a new article that came out today
The Mountain Times - News Story

 

[ernest8fingers]

i am jealous

Nice job Fins ! I want to see his picture in 10 years AFTER they perform surgery to reconstruct his rearend. I cant blame him though for hiring 20 something office girls - so much MONEY! So little brains!

 

[Forexwatchman]

Thanks for the reference Fins. Quoting from the article although Simmons "researched the foreign exchange market he was never able to identify a suitable trading platform for Black Diamond investor money" and he "never invested any client or personal funds into any type of foreign exchange market." This begs the question of why the hell not? I mean just a thought here, but couldn't he of just stuck to the basics and turned a decent profit, or was he really so arrogant and greedy that unless he found that elusive magic formula he'd rather keep every last cent to himself? Unbelievable!

 

[Fins]

Thanks for the reference Fins. Quoting from the article although Simmons "researched the foreign exchange market he was never able to identify a suitable trading platform for Black Diamond investor money" and he "never invested any client or personal funds into any type of foreign exchange market." This begs the question of why the hell not? I mean just a thought here, but couldn't he of just stuck to the basics and turned a decent profit, or was he really so arrogant and greedy that unless he found that elusive magic formula he'd rather keep every last cent to himself? Unbelievable!

There are a lot of people trying to figure that one out. First of all, he claimed to have some super secret software that did automatic investing that was designed to get a 4% return a month (48% annual uncompounded). Could be he just set the expectations too high.

Second question is if he was scamming the money, why did he blow it all instead of stashing it and running?

He was arrogant. It was a strange ego, in that it wasnt real obvious at first, but after observation I realized how arrogant he was. Part of it could be that he had been fired from a couple jobs before for attempted embezzlement. This part wasnt really discovered by most until after the arrest.