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Mark Scott was convicted in November 2019 of laundering a total of almost $400m in his role within One Coin pyramid scheme run by notorious 'Cryto Queen' Ruja Ignatova.

• An American lawyer who laundered $297million through Bank of Ireland accounts as part of a $3.35 billion cryptocurrency scam has been jailed for 10 years in the US.
• Mark Scott was convicted in November 2019 of laundering a total of almost $400 million in his role within One Coin pyramid scheme run by notorious 'Cryto Queen' Ruja Ignatova.
• Authorities said he had set up a number of bogus private equity investment funds called the Fenero Funds in the British Virgin Islands in 2015 because legitimate banks were unwilling to take Ignatova’s money.
• ​Scott then transferred money from OneCoin victims from the Fenero Funds via Ireland and the Cayman Islands.
• Court documents from the US state: “Between approximately May 2016 and July 2018, the Fenero Fund Accounts funded approximately €282,000,000 ($304,000,000) in wire transfers to a series of Fenero Fund bank accounts held at the Bank of Ireland in the Republic of Ireland.
• “At Ignatova’s direction, Scott subsequently transferred approximately €185,000,000 ($200,000,000) from the Bank of Ireland to the accounts of one of Ignatova’s other money launderers.
• “Through the use of the Fenero Funds, and the ensuing transfers, Scott successfully cleaned the funds, removing anyconnection to Ignatova or OneCoin and enabling Ignatova to move the funds where she pleased.”
• Bulgarian national Ignatova, who was the subject of BBC podcast The Missing Cryptoqueen, was sast seen in Dubai. She is currently one of the FBI’s Top Ten wanted fugitives, with a $250,000 reward for information leading to her capture.
• US Attorney for the Southern District of New York said: “Mark Scott, previously convicted at trial of laundering over $400 million of OneCoin proceeds for ‘Crypto Queen,’ Ruja Ignatova, used his law license as a means to participate in a massive money laundering scheme for a cryptocurrency that had no value since its inception.
• "Scott, an equity partner at a prominent international law firm, had boasted of earning ‘50 by 50.’ Indeed, Scott accomplished his goal, but by fraud and deception, and will now spend a decade in prison and has been ordered to forfeit all of his illegal proceeds.”
• Bank of Ireland employees were requested to testify as part of Scott’s trial, but declined. US authorities do not believe the Irish bank were aware of the nature of the scam and do not suspect them of any wrongdoing.

 

• www.irishstar.com/news/us-news/us-lawyer-launders-irish-bank-32020071

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Interesting #financialcrime typology for training purposes around 'easy money to be had' and the corruption of a younger 'technically savvy' generation.

In this case, Adam Gray, just 20 years old has been charged with 21 counts of unlawful use of a computer and attempted theft following an alleged #cryptocurrency fraud.

Readers might recall that a few years ago Conor Freeman (21) was jailed for role in $2 million cryptocurrency theft
identified by US Homeland Security as part of online group.  Freeman, jailed in Ireland, pleaded guilty to knowingly engaging in the possession of the proceeds of crime — namely 142.75682712 Bitcoin. Today (01 July 2023) that amount of bitcoin would be worth a hefty $4.35mn.

Not often is there media about dishonestly operating a computer “with the intention of making gain for yourself or another or causing loss to another”.  There is clearly more to the facts of this story than is currently in the public domain.  Mr Freeman was also charged with three counts of dishonestly operating a computer to make a gain.
Adam Gray, just 20 years old has been charged with 21 counts of unlawful use of a computer and attempted theft following an alleged cryptocurrency fraud. It is alleged that at a place unknown within the Ireland the accused dishonestly operated a computer, or caused it to be operated “with the intention of making gain for yourself or another or causing loss to another”.

Mr. Gray is also charged with five counts of attempted theft from different people, at locations in Dublin. The attempted theft charges related to a total of €1,249 while the amount of money alleged to have gone through the account was €8,136, the court heard.
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Conor Freeman case (November 2020)

This is a very interesting case.  Freeman was jailed in November 2020. In addition to pleading guilty to knowingly engaging in the possession of the proceeds of crime — namely 142.75682712 Bitcoin, he also pleaded guilty to stealing $100,000 in cryptocurrency from Darran Marble on May 15th 2018, stealing cryptocurrencies with an approximate value of $1,921,335, from Seth Sharpiro on May 16th, 2018, and stealing cryptocurrencies with an approximate value of $167,622.22 from Micheal Templeman on May 18th, 2018.  He also entered guilty pleas to three counts of dishonestly operating a computer to make a gain on dates between May 15th and May 18th, 2018. He has no previous convictions.

•  Freeman was identified by the United States Department of Homeland Security as being the person behind certain internet handles connected to the offences.

• Freeman was part of a group of people who had met online. This group identified people on social media who they believed might have access to some amount of cryptocurrency.
• ​The group was able to gain access to the email addresses and phone numbers of these people via social media, which was information needed to commit the crimes.
• Freeman’s co-conspirators knew people who worked in telecommunications who would transfer the phone numbers of potential victims onto SIM cards purchased by the group.
• The co-conspirators would then initiate protocols that are in place in the event of people forgetting their passwords in order to gain access to the online accounts of potential victims.
• After his co-conspirators gained access to the email exchanges of these people, Freeman would go through these exchanges and identify sources of cryptocurrencies they possessed.
• The proceeds of the thefts would be split evenly between all parties who were involved. The court heard that there are five co-accused of Freeman who are before the courts in the United States.
• Freeman's lawyer said his client was “very much a loner” as a teenager who reverted to an online world. He said his client started out “hacking” other persons accounts during online games and that he did so not for monetary gain, but rather for the “thrill”.

Adam Gray links:

• https://www.independent.ie/irish-news/courts/man-accused-of-unlawful-use-of-computer-in-crypto-fraud/a235542840.html
• https://www.linkedin.com/posts/peteroakes_financialcrime-cryptocurrency-activity-7080843579216027648-qXyS

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Conor Freeman link

• https://www.irishtimes.com/news/crime-and-law/courts/circuit-court/man-jailed-for-role-in-2-million-cryptocurrency-theft-1.4411641