FLORIDA
A Florida man pleaded guilty Thursday to conspiracy to commit securities fraud involving a global cryptocurrency-based Ponzi scheme that took in approximately $100 million from investors.
According to court documents, Joshua David Nicholas, 28, of Stuart, was the “Head Trader” for EmpiresX, a purported cryptocurrency platform.
Nicholas admitted that he and others fraudulently promoted EmpiresX by making numerous misrepresentations.
The misrepresentations included the following:
- Scam was a proprietary trading bot and fraudulent “guaranteed” returns to investors and prospective investors in the company.
- Nicholas and his co-conspirators claimed that EmpiresX operated a trading bot that used artificial and human intelligence to maximize profitability for investors.
Instead, EmpiresX operated a Ponzi scheme by paying earlier investors with money obtained from later EmpiresX investors.
In addition, despite representations to the contrary, EmpiresX never registered, nor took steps to register, EmpiresX’s investment program with the U.S. Securities and Exchange Commission.
Also EmpiresX didn’t have a valid exemption from this registration requirement.
Nicholas plead guilty to one count of conspiracy to commit securities fraud and faces up to five years in prison.
A sentencing date has not yet been scheduled.
The FBI Miami Field Office and HSI’s Miami Field Office are investigating the case.
Trial Attorneys Kevin Lowell and Sara Hallmark of the Justice Department’s Fraud Section and Assistant U.S. Attorney Yisel Valdes for the Southern District of Florida are prosecuting the case.
All investor victims of the EmpiresX scheme are encouraged to visit the webpage https://www.justice.gov/criminal-vns/crypto-enforcement to identify themselves as potential victims and obtain more information on their rights as victims, including the ability to submit a victim impact statement.