Wire fraud case raises alarms about currency scams

On Behalf of | Aug 4, 2020 | White Collar Crimes |

Concerns about investment and other money-related scams worry many New York residents. Incidents do occur where people find themselves defrauded of money. Sometimes, the scams involve millions of dollars. In one recent case, federal charges were levied against a man in connection to a digital currency scheme.

The monetary amount of the scheme lists at $4.5 million. Allegedly, the man had made claims about being a digital currency trader and requested loans for trading purposes. According to the U.S. Department of Justice, the man said he was putting monetary investments into a digital currency platform and claimed to have invested $400,000 of his personal funds.

Reports suggest that the man took money received from one loan to BTC, and the funds were then transferred directly to online gambling sites. It would appear that the loan funds never went into any investment vehicles.

Questions may exist about whether the lenders saw any paperwork about digital currency investments or whether there were only verbal agreements and assurances. Regardless, the money was not put into any digital currency platform. Ultimately, the scenario landed the man at the center of the scheme facing federal wire fraud charges. Even though the charges involve just one count of wire fraud, the maximum penalty could be 20 years in jail and a $250,000 fine.

Wire fraud involves defrauding people out of money or procuring money based on misrepresentation and falsehoods. With wire fraud, the process involves the use of electronic communications to commit the act.

Anyone charged with white-collar crimes in New York may speak with an attorney to discuss the merits of the prosecution’s case. If the charges are weak or false on improperly obtained evidence, an attorney may seek the dismissal of charges. An attorney might also mount a “not guilty” defense for a jury trial. Depending on the facts of the case, an attorney may even advise on plea bargain agreements.

FindLaw Network