Florida Man Files Fraud Lawsuit Against Algo Capital Over Alleged Crypto Investment Scam

On Tuesday, March 19, 2024, Armando Rubio, a Florida resident, filed an amended complaint in the United States District Court for the Southern District of Florida against Algo Capital LLC, K Sunset Consulting Inc, Kaito Group LLC, and individuals Robert Collazo Jr, Juan Herman, Julio Cesar Cruz, and Julian Cruz.

The complaint alleges that since January 2022, the defendants participated in a scheme to defraud Mr. Rubio and others of their money by marketing a fictitious algorithmic trading platform. It is claimed that Mr. Rubio was initially approached by Mr. Cruz who showed documents of large profits from an account at Algo Capital to induce investment. In August 2022, Mr. Rubio wired $100,000 to Kaito Group for investment in the platform. In the following months, he received withdrawal requests totaling $132,000.

Mr. Rubio was then shown statements indicating Mr. Cruz had over $2 million in his Algo Capital account. He agreed to transfer $670,000 worth of bitcoin from his blockchain wallet to Mr. Cruz in October 2022 in exchange for fractional ownership of the account. However, the complaint states others were also solicited investment for the same account. It is alleged the defendants falsified statements and used funds received from victims for personal expenses rather than trading.

The nine-count complaint brought under the RICO Act and various statutes alleges the defendants worked together in operating the fraudulent scheme through wire and mail communications. It seeks treble damages for losses totaling over $670,000 incurred by Mr. Rubio, as well as the return of funds and crypto assets. The complaint also requests injunctive relief barring the movement or dissipation of related assets during litigation.

Please contact BlockTribune for access to a copy of this filing.