An Illinois court accepted a case against George Daskaleas, known as the Greek Madoff for orchestrating a massive
$500 million Ponzi scheme. The case also files charges against Ikon Global Markets Inc and its Managing Director Diwakar Jagganath.
The charges brought forward to the court are seeking damages to the tune of $23 million. Based on the affidavits of Iacovos Ghalanos, Victor Resti and Bella Resti, the circuit court has accepted the case. A similar effort which was filed in the UK by the same group of investors has not yielded any results for the plaintiffs.
The charges allege that the defendants have knowingly assisted Daskaleas in setting up his multi-million scheme. Greek authorities have stumbled upon his Ponzi effort at the end of 2015.
The pyramid scheme was run as a hedge fund by Dassaleas for years. The fund was established in 2013. At the time the operations of the intermediary Ikon Global Finance have already been shut down as the impact of the Dodd Frank regulations forced a number of brokers to exit the US market.
George Dassaleas was stating to his clients that he has expansive knowledge in trading the frying exchange market. The initial capital of the hedge fund is stated to have reached $254 million. Promising “guaranteed returns of up to 60%” he managed to accumulate over $500 million at some point.
In May 2015 it was discovered that while the hedge fund’s value exceeded $ 500 million, the bank account balances held by the management company were at zero. The headquarters of Mr. Daskaleas’s investment fund was in Belize. According to Greek media reports at the time he allegedly solicited funds from Greek, European and Ukrainian individuals and businesses.
The Greek Securities and Exchange Commission has inspected and fined Mr. Daskalas in 2010 for providing investment services illegally. According to the regulator he was providing investment services to a large number of clients in Greece without having the appropriate license.