A federal jury in the northern district of California on Wednesday convicted cryptocurrency entrepreneur Rowland Marcus Andrade for thread fraud and money laundering associated with the sale of a token called AML Bitcoin.
The charges came from an initial coin tender Andrade, performed for AML Bitcoin in 2017 and 2018. Early judicial archives covered by Coindesk alleged Andrade, a resident of Texas, told fake investors that AML Bitcoin -Tokens would eventually be converted to a Maltonable Aml Bitcoin launched and was named to care.
The conviction marks the end of one of the first and longest running crypto “pump-and-dump” cases to involve US federal prosecutors.
The Ministry of Justice appointed famous DC lobbyist Jack Abramoff as a co-conspiracy, and he pleaded guilty to 2020 and paid more than $ 50,000 in Disgorgement and interest. Abramoff is better known for his commitment to a federal corruption scandal that resulted in his prison and was depicted in the film “Casino Jack.“
A statement released by the US Ministry of Justice accused Andrade of diverting “more than $ 2 million in revenue from the sale of AML Bitcoin” and use it for “personal expenses, including the purchase of two properties in Texas and two luxury cars.”
According to the statement, Andrade also false claimed that Panama Canal Authority was close to allowing AML Bitcoin to be used for ships passing through the Panama Canal when no such deal existed.
“Scammers often show new and innovative technology to raise money from investors. But raising money through lies and erroneous representations are neither new nor innovative. It’s illegal, common and simple,” said the acting US lawyer Patrick D. Robbins. “If you are deceiving investors to enrich yourself and spend their money on personal expenses, home and property, you will be kept to account.”
Andrade is scheduled to be convicted in July. According to the DOJ press release, “he faces a maximum penalty of 20 years in prison for the counting of wire fraud and 10 years in prison for counting money laundering, and forfeiture of all property that can be traced to his wire fraud and violation of money laundering, including property that Andrade bought in Texas.”
