Authorities arrested a man suspected of securities fraud at the Los Angeles International Airport. He now faces charges of conspiracy to commit wire fraud. The man’s sister also faces charges of wire fraud, securities fraud and money laundering.
Federal prosecutors in New York say the siblings orchestrated a massive cryptocurrency Ponzi scheme. Known as OneCoin, the fraud purported to be a multi-billion-dollar cryptocurrency company. In reality it was nothing but a scam.
Investigators say that the pair initiated the scam in 2014 and enticed investors to give the company their money. OneCoin investors received commissions for recruiting other investors into the scam. According to the FBI, between late 2014 and 2016, the conspirators amassed more than $3B in investor funds. Emails between one defendant and an unnamed co-conspirator show that the writer understood that their commission model was unsustainable. It also directly appealed to “greedy” investors. The defendant also claimed to be able to manipulate the exchange to change the cryptocurrency’s worth.
Initially, the sister ran the fraud, but she disappeared in 2017 and remains out of custody. At that time, the brother took over the company’s operations. He traveled worldwide soliciting investors in the OneCoin scheme. The company itself is based in Bulgaria, and the defendants are Russian citizens. The pair perpetuated the fraud by providing investors with phony documentation about the currency’s actual worth.
The fraud gained the attention of law enforcement agencies around the world. While the brother remains jailed in the United States, authorities continue to look for his sister.
Los Angeles Securities fraud lawyer
When you face charges for irregularities in the sales of securities, hire an experienced securities fraud lawyer like Robert Helfend. Mr. Helfend has 35 years of experience in criminal defense. He takes federal cases in any US District Court. He also takes cases in state courts in Los Angeles County and throughout Southern California.
Securities fraud cases can be very complex. Proper defense may require the use of financial experts who can testify on your behalf. Sometimes, the prosecutor’s case against you is overwhelming, and an acquittal is not a possibility. When that’s your circumstance, an experienced criminal defense lawyer will work hard to get selected charges against you reduced or dropped. This can help reduce the impact of a conviction on you and limit the judge’s sentence.
Don’t rely on an inexperienced lawyer for this kind of help. Contact Robert Helfend or call toll-free at (800) 834-6434, (310) 456-3317, (818) 591-2809 or (805) 273-5611 for an immediate consultation on your Los Angeles County securities fraud case.
Photo Credit: Richard Patterson, via Flickr.com