A Manhattan girl was arrested Thursday over a scheme wherein she allegedly siphoned practically $300,000 from dozens of buyers — and used the money to bankroll her luxurious way of life, the feds mentioned.
Lakenya Hopkins, 44, is accused of preying on individuals of colour by telling them investing along with her would result in generational wealth, after which utilizing their cash to lease a swanky condo and purchase fancy objects as a substitute, federal prosecutors mentioned.
Hopkins, who was nabbed with the assistance of the NYPD’s monetary crimes job power and the US Secret Service, allegedly conned 110 individuals out of $290,000 within the scheme, which lasted from August 2020 till about April 2021.
In November 2020, she used about $85,000 from buyers to place down a yr’s value of lease on a Manhattan residence, prosecutors mentioned in an indictment. She additionally used a number of the funds on journey and to purchase cryptocurrency for her personal profit, the grievance states.
Whereas working Cash Magnet Platinum Membership Initiative LLC, Hopkins promised astronomical — and unrealistic — charges of returns on investments, the US Legal professional’s Workplace for the Southern District of New York mentioned. She marketed the faux “funding membership” as a approach for individuals of colour to construct generational wealth, US Legal professional Damian Williams mentioned.
“She lied to induce their investments and continued to lie after they questioned her concerning the standing of their investments,” Williams mentioned in a press release. “As a substitute of investing the cash as promised, she allegedly enriched herself.”
Hopkins claimed to buyers she would get them $8,000 in month-to-month returns for each $1,000 they invested by pooling the cash and placing it right into a hedge fund that assured a 3-5% each day returns, the feds alleged.
However Hopkins by no means invested the cash and in January 2021 she did not dole out the primary assured month-to-month cost, as a substitute telling shoppers she was pausing MMPMI and would return the cash, based on the grievance.
When pressed by frightened buyers, she allegedly lied and mentioned the cash was nonetheless within the hedge fund and they'd “not take a loss.” She additionally claimed to them she was “not protecting any cash,” the feds mentioned.
Hopkins finally refunded about 5 shoppers. As of Thursday, she has not paid buyers the promised returns, based on prosecutors.
She was charged with one rely every of securities fraud and wire fraud that would land her in jail for a most of 40 years if convicted.
NYPD Commissioner Keechant Sewell known as Hopkins’ alleged actions “despicable.”
“Ms. Hopkins turned her buyers into victims, betraying their belief to hold out her personal despicable embezzlement scheme,” Sewell mentioned in a press release.
Further reporting by Larry Celona
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