- Two fraudsters used corporate loopholes to falsely claim ties with Tether executives.
- Chinese pig-butchering scammer Sun Yunfeng and US-based Mohammad Alam teamed up for the scam.
- Sun is currently evading Google’s lawsuit by hiding in China.
- Sun’s LinkedIn profile falsely claims he worked for the Salvation Army.
- California’s incorporation rules allow for easy deception in corporate filings.
In a bizarre twist, complicated corporate regulations in California and Colorado enabled a Chinese pig-butchering scammer and a US-based manipulator of the elderly to collaborate – according to a Protos’ report.
The unlikely duo — convicted criminal Mohammad Alam and Chinese national Sun Yunfeng — deceived many by claiming they were directly involved with Tether, a well-known cryptocurrency company.
Sun Yunfeng, facing civil RICO charges from Google, has avoided being served by the tech giant by hiding in China.
Sun has been accused of creating multiple Google Store apps to swindle unsuspecting users.
These apps funded ongoing pig-butchering scams in Myanmar, Cambodia, and other parts of Southeast Asia. Sun is also the chairperson for a firm called Cryptocurrency Association, based in California.
Exploiting Legal Loopholes
On the company’s corporate filings, Sun, using the pseudonym Alphonse Sun, is listed as the ‘independent director of the board.’
The filings also incorrectly list six Tether executives, including general counsel Stuart Hoegner and CFO Giancarlo Devasini.
Their addresses are given as the office address for the Cryptocurrency Association. Tether has confirmed that it has no connection to this apparent scheme and is investigating the matter.
California’s incorporation policy, known as the ‘good faith filing policy,’ means that when individuals are listed as part of the company, it’s accepted as fact until proven otherwise.
This allows for easy deception in corporate filings. An official from the Secretary of State’s office in California explained that individuals lying in these documents could face perjury charges.
But prosecuting foreign nationals or individuals in countries without extradition policies with the US remains a significant challenge.
The Fake Bank
Sun also incorporated a company called USDT Bank LLC in Colorado, where laws against using ‘bank’ in a company’s name without permission do not exist.
This fake Tether-related entity was established in 2022. Sun and Alam also falsely claimed connections to Bitpay, a bitcoin payment processor in the US.
While Sun continues to evade authorities by possibly shuffling between China, Myanmar, or Laos, Mohammad Alam remains in the US.
Alam, who recently got off probation for a similar scam, pled guilty in April 2022 to a felony involving scamming elderly individuals in Louisiana out of nearly $350,000. His sentence included two years probation and restitution.
The Need for Stronger Regulations
The ability of foreign nationals to exploit corporate loopholes to commit significant fraud against vulnerable Americans is alarming.
There is an urgent need to update corporate rules and regulations, as well as state and federal laws, to prevent such behavior.
Corporate loopholes are allowing fraudsters to exploit the most vulnerable people in America. Even the Department of Justice acknowledges that many laws, rules, and regulations are outdated and insufficient to protect consumers from high-stakes, international financial scams like pig-butchering.
Conclusion
The case of Sun Yunfeng and Mohammad Alam is a glaring example of how outdated corporate regulations can enable fraudsters to exploit legal loopholes and deceive investors and consumers.
While authorities like Tether and the California Attorney General’s office are investigating these scams, the need for stronger and more effective regulations has never been more urgent.
By closing these loopholes, we can better protect consumers and ensure that fraudsters face the consequences of their actions.
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