A famous film producer, Atlanta was convicted of wire fraud and money laundering charges for promoting fraudulent crypto investment schemes. These schemes allegedly deceived about $2.5 million in investment funds.
US Department of Justice (DOJ) declared in the official indictment that a 48-year-old scammer named Ryan Felton transferred $2.4 million in investments from initial coin offerings (ICOs) and trading markets into his account.
“Defendant used 21st century technology to perpetrate an age-old fraud: lying to investors to steal their money and fund his own lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Felton’s conviction should serve as a warning to anyone who seeks to leverage emerging technologies to victimize others.”
According to U.S. Attorney Buchanan and other official court documents, Felton promoted an initial coin offering (ICO) for a new entertainment streaming platform called FliK in 2017.
To lend credibility to his claim and attract investors, he lied to people that a famous Atlanta rapper and actor was a co-owner of FLiK. He also falsely represented that the US military would distribute the streaming platform to the military.
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However, whatever promises he made before the ICO was closed were all lies. Right after the ICO closed, Felton sold over 40 million FLiK tokens on the trading markets, causing his market value to plummet.
Other than that, instead of using the funds from these investors to develop a streaming platform, Felton spent that money on his extravagant lifestyle, including cash purchases of a 1.5 residence. million dollars, a $180,000 red 2007 Ferrari 599 GTB Fioran Coupe, a new $58,250 Chevy Tahoe and about $30,000 in diamond jewelry.
After tasting the first fraudulent crypto product, Felton promoted another ICO for the so-called crypto exchange, CoinSpark. These days, he has tricked investors with the false promise that he would share 25% of the crypto exchange profits with Spark coin investors.
He also counterfeited investors about the company’s audit that a global accounting firm would audit CoinSpark’s finances on a quarterly basis. In fact, he never contacted this accounting firm.
To create a fake hype about CoinSpark, he appeared on various social media accounts under a fake name.
The official document stated that “Atlanta, Georgia pleaded guilty to twelve counts of wire fraud, ten counts of money laundering and two counts of securities fraud on the fourth day of his jury trial.”
Sentencing on those charges on Felton will be scheduled for a later date before U.S. District Court Judge JP Boulee.