9 takeaways from our series on Instagram influencer Jay Mazini
Jay Mazini, a young entrepreneur from New Jersey, rose to fame posting Instagram videos handing out cash to strangers alongside rap stars and doling out spiritual and financial advice.
His online influencer persona crumbled amid allegations of fraud and theft and his involvement in a brutal kidnapping. Customers said they didn’t get products or services they bought, while investors claimed he stole millions.
NorthJersey.com and the USA TODAY Network New Jersey examined hundreds of pages of documents and interviewed about 20 acquaintances, community leaders, customers, investors and social media experts to understand how he used his influence to carry out alleged and admitted schemes.
The Influencer:Jay Mazini found fame on social media. Did he use that fame to swindle millions?
Mazini, 27, an Edgewater resident whose real name is Jebara Igbara, ran several types of schemes. Here’s how he made his money:
Giveaway promotions
Mazini promised to give away thousands of dollars to a certain number of customers who bought items from his Mazini Italy clothing company or who enrolled in his Mazini Academy. People bought his products and services, but he was accused of lying about cash giveaways.
Halal Capital
Mazini set up an investment company that promised to conduct “halal,” or Quran-compliant business. Muslim New Yorkers invested millions of dollars, but Mazini spent it on personal expenses and gambling, according to federal investigators. He also used the money to pay off past debts to investors in what they called a Ponzi scheme. The Securities and Exchange Commission identified more than a dozen Halal Capital victims who lost $8 million combined.
Bitcoin scam
Mazini offered to buy bitcoin from online followers at a price that was higher than market value. He provided fake evidence of wire transfers instead of actual payment, he admitted in court. Federal investigators identified four victims who lost more than $5 million combined.
Federal agencies that monitor fraud and consumer scams say social media has become a gold mine for scams. In 2021, a quarter of all reported fraud losses were connected to social media — an eighteenfold increase since 2017, the Federal Trade Commission reported.
Investors should look out for these red flags, warns the U.S. Securities and Exchange Commission:
Promises of high investment returns, with little or no risk. Fraudsters may post fabricated historical returns on their websites showing high investment returns.
Pressure to buy immediately, before one has the chance to think about it or investigate.
Testimonials and celebrity endorsements. Fraudsters sometimes pay people to tout an investment on social media, so don’t be swayed by these endorsements when making an investment decision.
Other SEC tips
Beware of "affinity fraud.” Fraudsters sometimes exploit tight-knit trust and friendships within a community, targeting members of identifiable groups including people of a certain ethnicity, religion, or profession. This is known as affinity fraud. Even if you know someone selling the investment, do research and check the background.
Be wary of the “halo effect.” Don’t assume a person is trustworthy because of a positive trait like attractiveness or youthfulness. This “halo effect” is a bias that can cloud one’s judgement.
If it sounds too good to be true. Anti-fraud experts say promises of guaranteed returns and little to no risk are highly suspect. They give this age-old advice — if it sounds too good to be true, it probably is.
This article originally appeared on NorthJersey.com: Jay Mazini Scam: How the online influencer got millions from investors
