ATLANTA — A Flowery Branch man accused of organizing a $165 million cryptocurrency Ponzi scheme is back on U.S. soil after federal investigators tracked him to Fiji.
U.S. Attorney Theodore S. Hertzberg and FBI Supervisory Special Agent Aaron Seres announced the overseas capture, deportation and arrest of Edward Zimbardi, who faces federal charges in connection with the alleged scheme.
Zimbardi was charged last month in a federal indictment with 12 counts of wire fraud, 12 counts of money laundering and one count of money laundering conspiracy.
Federal officials say Zimbardi operated “The Crypto Program,” which promised investors 25% monthly returns on advertising packages. Hertzberg says the alleged scheme victimized more than 6,000 people and resulted in $165 million in losses in just 14 months.
“It is a huge amount of money, the scope is enormous, the impacts are devastating, 6,000+ victims, and $165 million lost,” Hertzberg said.
Officials say instead of delivering the promised returns, Zimbardi spent investors’ money on risky currency trades, payments to earlier investors, a house and expensive vehicles.
“Zimbardi allegedly tricked thousands of people to invest in his ‘Crypto Program’ with false promises of enormous returns. Instead, he spent the money on risky currency trades, payments to early investors, and treating himself to a house and expensive vehicles,” Hertzberg said. “When his scam imploded, he allegedly tried to evade federal prosecutors by fleeing to the other side of the world. Thanks to law enforcement and diplomatic authorities in Fiji and the United States, Zimbardi is back on American soil and will face trial.”
Hertzberg says Zimbardi was found living at a luxury beachside property in Fiji.
“This case is yet another example of victim suffering while the perpetrator has lived a good life using their money,” Hertzberg said.
Hertzberg also says Zimbardi convinced some people who had already lost money to invest again in an effort to get their money back.
“People who engage in this predatory behavior truly are disgusting, truly are leeches, and vultures, and mosquitos, and ticks picking the blood from people who are doing nothing more than trying to get by,” Hertzberg said.
FBI Atlanta Supervisory Special Agent in Charge Aaron Seres says Zimbardi was on a flight from Fiji, resting and watching movies, without knowing several federal agents were sitting near him. Seres says agents revealed themselves after the plane landed at Los Angeles International Airport.
“When we made it apparent that we’re with the FBI and that we have a warrant for your arrest, I would say he was humbled by the moment,” Seres said.
Zimbardi is expected to appear before a judge in Atlanta.
It is not clear how much of the money can be returned to victims.
WSB Radio’s Ashley Simmons & Veronica Waters contributed to this story.
