A Mound, Minn. couple and their company are under investigation by the FBI and IRS for an alleged investment scheme that promised “exponential growth.” But a search warrant affidavit reveals how four investors grew suspicious of Jeremy Lundin’s Big Island Capital, and the struggles they faced when trying to cash out.
Of the 37 individuals who made deposits with Big Island Capital, 13 are known victims of the alleged scheme, with deposits totaling $636,288.
According to the search warrant affidavit, between May 2015 and May 2017 Lundin worked through a network of associates and friends to solicit investors to invest in Big Island Capital by promising “exponential growth through options trading.” Lundin provided investors with a written investment strategy including the following statement:
“Our investment strategy is consisted of only options trading. This isn’t the buy low, sell high, keep the stock for a long time strategy that the majority of investors participate in. Options trading consists of buying of selling contracts of an underlying company’s stock instead of the stock itself. This means your money goes further and your investment grows exponentially. With this strategy, there is risk. There is a chance that the price of the stock goes the opposite way, but your investment is protected with stop losses.”
Between May 2015 and May 2017, $992,188 from 37 individuals was deposited into a Wells Fargo account in the name of Big Island Capital. The investigation has revealed that Lundin met with potential investors at multiple locations during these two years to pitch his investment strategy, and promised investors their funds would be used for options trading.
Victims of the scheme were able to access online statements via a web-based service at bigisland.capital, which is no longer available.