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Alleged coin fraud leads to arrest warrant for former politician

On Behalf of | May 5, 2020 | Fraud |

While criminal allegations involving violence and robbery will garner more attention, fraud charges can also have long-term consequences and financial ramifications. There are many ways in which a person can be confronted with fraud. It can be connected to cryptocurrency, stocks, memorabilia, collectibles, artwork and more. Often, people who are in positions of prominence in the public and private sector are charged. A legal professional experienced in helping with a defense may be the most important aspect of a successful outcome.

A former state senator in Washington State and two people from Florida face a bench warrant from a Texas judge for an alleged acts of fraud with an initial coin offering. The ex-politician and the couple are accused of raising $4.3 million in the scheme. They are said to have defrauded their customers in the United States and from abroad. In the ICO, investors were told the coins had billions in backing. However, there are no coins to sell.

The Securities and Exchange Commission froze the ICO accounts as it began its fraud case. The SEC is seeking penalties, the return of the money and more. The victims may not get their money back. The arrest warrant was issued because the judge does not think a fine is sufficiently compelling for the defendants to comply with the order. The parties cannot continue operating the ICO if they are incarcerated. Nor can they promote it or contact those who invested in it.

Fraud generally falls into the category of white collar crime. There could be a perception that white collar criminal charges are not as serious as other crimes. However, the penalties for white collar crime can be significant. Often, there are massive amounts of money involved with these fraud claims. Prison, fines, loss of licenses and disfavor in the community are some of the potential results of a conviction.

Regardless of the situation, it is imperative to formulate a viable defense. Perhaps there is an opportunity to reduce some of the charges in a plea bargain. The case could be questionable meaning there is the potential for an acquittal. Having legal advice experienced in fraud cases could be a fundamental aspect of that defense. Calling for a consultation is the first step.


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