Jay Mazini, Instagram influencer from Edgewater, pleads guilty to Ponzi scheme
A New Jersey Instagram influencer known for his luxury lifestyle and cash giveaways was ordered to pay millions of dollars in restitution to victims of his money-making schemes after a guilty plea in a federal fraud case on Wednesday.
Jay Mazini, 27, an Edgewater resident whose real name is Jebara Igbara, pleaded guilty in federal court in Brooklyn to charges of wire fraud, conspiracy to commit wire fraud and money laundering in connection with a bitcoin scheme.
The social media star rose to fame posting videos of himself handing out large amounts of cash to strangers including fast-food workers and Walmart customers. He appeared with famous rappers in giveaway videos, including 50 Cent and Fabolous. In reality, Mazini was running multiple fraud schemes, scamming investors out of at least $8 million, federal investigators said.
Mazini, who faces up to 20 years in prison on the fraud charges, is currently detained at the Passaic County Jail in connection with a brutal kidnapping last year.
In March 2021, federal investigators accused Mazini of using his influence to dupe followers into selling him bitcoin as well as to defraud investors of his company Halal Capital.
In court, he admitted to defrauding members of a Muslim American community in New York, enticing them with promises of profitable "halal" investment. Halal means permissible under Islamic teaching. He told investors he would purchase items such as hand sanitizer, electronic devices and medical masks in bulk and resell them for a profit. Instead, he used the money for personal expenses and gambling, investigators said.
To raise money to pay back investors, he created a bitcoin scheme offering to pay above-market prices for cryptocurrencies in January and February 2021. He would then send doctored images of wire transfer confirmations, claiming falsely that he had sent payment.
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“All the victims in this case were promised something that was too good to be true," said Special Agent in Charge Thomas Fattorusso of Internal Revenue Service Criminal Investigation. "Those in the Ponzi scheme were all assured a high rate of return in a short amount of time, while the victims of the bitcoin advance fee scheme were guaranteed above current market value for their bitcoin.
"This multimillion-dollar case is a reminder for anyone thinking of investing: Be skeptical of any investments with larger than life promises, because if it sounds too good to be true, it probably is."
Mazini was ordered to pay $5.12 million in restitution for the bitcoin scheme and another $5.1 million in forfeiture.
He also is expected to pay additional restitution in connection with the Halal Capital charges, said Prosecutor Lauren Elbert. The sum will be determined at his sentencing hearing.
"Unfortunately, I'm a human being at the end of the day," Mazini told the judge.
Mazini also faces lawsuits in connection with his Halal Capital venture.
Elbert said the government is seeking a sentence of eight to 10 years in prison. Each charge has no minimum sentence but carries a maximum of 20 years in prison, Eastern District of New York Judge Peggy Kuo said. Judge Frederic Block will be in charge of Mazini's sentencing. The sentencing date was not announced during the plea hearing.
In March, Mazini pleaded guilty to kidnapping a Wayne man who accused him of fraud in online comments and videos. The victim was stripped, beaten and threatened with a machete, according to police. Mazini cut a deal with prosecutors for a five-year prison sentence in exchange for pleading guilty to one count of first-degree kidnapping, authorities said.
The victim, Amjad Mashal, is being held at the Bergen County Jail, accused of accepting a bribe to drop the charges.
This article originally appeared on NorthJersey.com: Instagram influencer Jay Mazini pleads guilty to Ponzi scheme
