Jack Abramoff, who was once a powerful Washington DC lobbyist before conviction on corruption charges over a decade ago, was recently charged in a crypto fraud case. According to an announcement by the U.S. Attorney’s Office, Northern District of California, Abramoff was charged with criminal conspiracy. He is accused of making misleading and false statements to potential investors in a crypto scheme.
Jack Abramoff has Pled Guilty
According to the announcement, Abramoff and Rowland Marcus Andrade, who is connected to the case, have pled guilty. He could now be facing up to five years imprisonment. The indictment claims that Andrade and Abramoff made false and misleading statements to sell a new crypto coin called AML Bitcoin. The pair managed to raise over $5 million through these sales.
In another lawsuit, the United States Securities and Exchange Commission is suing Abramoff for engaging is the sale of unregistered securities. According to the SEC, Abramoff sold the unregistered securities via the NAC Foundation, which was behind the AML Bitcoin cryptocurrency.
The SEC has also indicted Rowland Marcus Andrade for his role in the NAC Foundation. According to the indictment, NAC Foundation raised at least $5.6 million form over 2,400 investors via the sale of the AML Bitcoin.
Their False and Misleading Statements
Both the SEC and the Justice Department accused the duo of making several false and misleading statements. For instance, they claimed that AML Bitcoin commercials would air during the Super Bowl. However, the founders had no resources to fund such an ad when they made the claim.
Abramoff’s Past Crimes
In 2006, Abramoff was sentenced to 43 months in prison after he pled guilty to tax evasion, conspiracy to bribe a public official, and fraud. He was jailed for his role in a fraudulent scheme involving Native American tribes. According to the authorities, Abramoff was involving in the overcharging of the tribes for the development of gambling and casino activities on their reserve. The scheme led to 20 convictions or guilty pleas. Two officials in the George W. Bush’s administration were also involved in the scheme, other political lobbyists and aides, and a former Congressman.