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Headlines that Matter for Firms and Executives in Regulated Industries
Co-Founder of Fraudulent Cryptocurrency Sentenced to 20 Years in Prison
Karl Sebastian Greenwood, a citizen of Sweden and the UK and co-founder of the cryptocurrency OneCoin, was sentenced to 20 years in jail for his alleged function in a $4 billion fraud scheme. As described by prosecutors, OneCoin started operations in Bulgaria in 2014 and offered a fraudulent cryptocurrency with the identical identify by way of a multi-level-marketing (MLM) scheme. Round 2015, OneCoin started working in the USA.
The federal government charged Greenwood and others with making varied misrepresentations about OneCoin to safe over $4 billion in investments from roughly 3.5 million buyers. These alleged misrepresentations embrace claiming that OneCoin’s worth was based mostly on market provide and demand although the worth was really set arbitrarily with out regard to market forces. Greenwood additionally claimed to have a non-public blockchain to determine OneCoins and report historic transactions, when no public verifiable blockchain really existed.
In accordance to the federal government, OneCoin marketed its cryptocurrency by way of a world MLM community whereby OneCoin members would obtain commissions for recruiting others to buy cryptocurrency packages. As OneCoin’s high MLM distributor, Greenwood is alleged to have earned 5% of month-to-month OneCoin gross sales, totaling over $300 million. As well as to his 20-year jail time period, Greenwood was ordered to pay roughly $300,000 in forfeiture. OneCoin’s different co-founder, Ruja Ignatova, stays at giant and was added to the FBI’s High Ten Most Needed Checklist in June 2022.
A link to the US Department of Justice’s (DOJ) press release can be found here.
Prison Inmate Pleads Responsible in COVID-19 Reduction Fraud
Telvin Breaux, an inmate in a California jail, and three different co-defendants pleaded responsible to conspiracy and aggravated id theft fees for his or her alleged roles in a $25 million unemployment advantages scheme. In accordance to the DOJ, Breaux and his co-defendants obtained private figuring out data of different inmates, in addition to sufferers and prospects at hospitals, dentists’ workplaces, and different companies the place one of the co-defendants labored or had connections. Breaux and his co-defendants then used this data to submit fraudulent unemployment insurance coverage claims to the California Employment Growth Division (EDD). In reference to these false claims, Breaux and his co-defendants additionally made particular misrepresentations that the people whose data they stole had been unable to work because of this of the COVID-19 pandemic.
In whole, defendants are alleged to have submitted over 400 fraudulent claims totaling over $25 million to the EDD, $5.4 million of which was really paid out and utilized by the defendants to buy luxurious automobiles, fund journeys to Las Vegas, and pay hire and tuition. Every defendant faces a most of 22 years imprisonment in addition to fines of $250,000.
A link to the DOJ’s press release can be found here.
Former NYC Non-Revenue Finance Director Sentenced to 18 Months Imprisonment
Donna Murray, the previous finance director of a New York Metropolis-based nonprofit monetary providers commerce affiliation with over 600 members, was sentenced to 18 months imprisonment for allegedly embezzling practically half one million {dollars} from the nonprofit. The federal government alleges that Murray was the nonprofit’s sole finance division worker and was liable for sustaining the group’s books and data, dealing with accounts receivable and payable, and managing monetary statements to exterior auditors. As well as, Murray is alleged to have been the one worker with the power to make wire transfers for the group.
As detailed in the DOJ’s data, Murray was charged with a months-long embezzlement scheme in which she stole over $488,000 from the group’s financial institution accounts by way of 105 unauthorized wire transfers to her private account. Murray lined up the scheme by creating false entries in the organizations normal ledger and transferring lower than $10,000 in every transaction to keep away from triggering financial institution reporting necessities. Prosecutors charged Murray with utilizing the misappropriated funds to pay private loans and buy luxurious objects. For her conduct, Murray was sentenced to 18 months in jail.
A link to the DOJ’s press release can be found here.
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