{"id":54988,"date":"2023-12-12T11:08:46","date_gmt":"2023-12-12T19:08:46","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=54988"},"modified":"2023-12-12T11:09:28","modified_gmt":"2023-12-12T19:09:28","slug":"two-men-face-federal-charges-alleging-that-they-ran-25-million-cryptocurrency-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=54988","title":{"rendered":"Two Men Face Federal Charges Alleging That They Ran $25 Million Cryptocurrency Ponzi Scheme"},"content":{"rendered":"

\u00a0\u00a0LOS ANGELES\u00a0<\/strong><\/span><\/p>\n

\"\"A superseding indictment was unsealed this week, charging an Australian national and a Hollywood Hills man with operating a cryptocurrency Ponzi scheme that defrauded victims of more than $25 million.<\/span><\/p>\n

According to court documents, David Gilbert Saffron, 51, of Australia, and Vincent Anthony Mazzotta Jr., 52, of the Hollywood Hills area of Los Angeles, allegedly conspired to operate a fraudulent scheme to induce victims to invest in various trading programs.<\/span><\/p>\n

The programs falsely promised to employ an artificial intelligence automated trading bot to trade victims\u2019 investments in cryptocurrency markets and earn high-yield profits. <\/span><\/p>\n

\"\"Saffron and Mazzotta promoted the investment programs under Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital, and Cloud9Capital. <\/span><\/p>\n

Rather than investing victims\u2019 funds in cryptocurrency, Saffron and Mazzotta allegedly misappropriated victims\u2019 funds to pay for personal expenses, including private chartered jet flights, luxury hotel accommodations, private mansion rentals, a personal chef, and private security guards.<\/span><\/p>\n

Saffron and Mazzotta allegedly created a fictitious entity called the Federal Crypto Reserve to execute the scheme. <\/span><\/p>\n

\"\"The indictment alleges that, after inducing victims to invest in one of the cryptocurrency investment programs, Saffron and Mazzotta fraudulently solicited victims to pay the Federal Crypto Reserve to investigate and recover the victims\u2019 losses. <\/span><\/p>\n

To conceal his identity, Saffron often allegedly solicited victims under various aliases, including David Gilbert and Dave Gabe, and various online personas, including the Blue Wizard and Bitcoin Yoda.<\/span><\/p>\n

Saffron and Mazzotta also allegedly conspired to obstruct official proceedings by concealing assets, concealing or destroying evidence, and falsifying records. <\/span><\/p>\n

\"goldThe defendants also allegedly conspired to conceal the source and location of victims\u2019 cryptocurrency investments through various means, including using methods known as \u201cblockchain hopping\u201d and through services known as \u201cmixers\u201d or \u201ctumblers\u201d that are designed to prevent cryptocurrency tracing.<\/span><\/p>\n

Saffron and Mazzotta are charged with conspiracy to commit wire fraud, wire fraud, conspiracy to obstruct justice, conspiracy to commit money laundering, and money laundering. <\/span><\/p>\n

Saffron is also alleged to have committed felonies while on pre-trial release. <\/span><\/p>\n

If convicted, they each face a maximum penalty of 20 years in prison for each count of conspiracy to commit wire fraud and money laundering, 20 years in prison for each wire fraud count, ten years for each money laundering count, and five years for conspiracy to obstruct justice. <\/span><\/p>\n

Defendants are presumed innocent unless proven guilty.<\/span><\/p>\n

Saffron also faces up to 10 years in prison, consecutive to any other sentence, for committing felonies while on pre-trial release.<\/span><\/p>\n

IRS Criminal Investigation is investigating the case.<\/span><\/p>\n

Assistant U.S. Attorney James Hughes of the Major Frauds Section and Justice Department Trial Attorneys Theodore Kneller and Siji Moore of the Criminal Division\u2019s Fraud Section are prosecuting the case.<\/span><\/span><\/p>\n

The Commodity Futures Trading Commission previously charged Saffron by complaint.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0\u00a0LOS ANGELES\u00a0 A superseding indictment was unsealed this week, charging an Australian national and a Hollywood Hills man with operating a cryptocurrency Ponzi scheme that defrauded victims of more than $25 million….<\/p>\n","protected":false},"author":1,"featured_media":11461,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-54988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-department-of-justice"],"yoast_head":"\nTwo Men Face Federal Charges Alleging That They Ran $25 Million Cryptocurrency Ponzi Scheme<\/title>\n<meta name=\"description\" content=\"\u00a0\u00a0LOS ANGELES\u00a0 A superseding indictment was unsealed this week, charging an Australian national and a Hollywood Hills man with operating a cryptocurrency\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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