Founder of AML Bitcoin Sentenced to Seven Years in Prison Amid $10 Million Fraud Case

• Andrade used $2 million from AML Bitcoin sales for personal luxury expenses, including properties and vehicles.

• False claims about AML Bitcoin’s technology and business deals misled investors, including a fabricated Panama Canal agreement.

• Political lobbyist Jack Abramoff was also penalized for promoting AML Bitcoin, facing disgorgement and securities restrictions.

Rowland Marcus Andrade sentenced for AML Bitcoin crypto fraud, defrauding $10M. Learn about the case, legal outcomes, and investor protections today.

Rowland Marcus Andrade’s Conviction and Sentencing for AML Bitcoin Fraud

Rowland Marcus Andrade was convicted by a California jury in March for wire fraud and money laundering related to the AML Bitcoin cryptocurrency scam. The court sentenced him to seven years in prison, a term shorter than the government’s requested 17.5 years but significantly longer than his defense’s two-year proposal. Andrade’s fraudulent scheme deceived investors by falsely promoting AML Bitcoin’s technology and business partnerships.

How Did Andrade Mislead Investors About AML Bitcoin?

Andrade fabricated claims about AML Bitcoin’s capabilities and partnerships, including a false statement that the Panama Canal Authority approved the token for use in shipping transactions. These misrepresentations created an illusion of legitimacy, convincing investors to contribute funds that were instead diverted to Andrade’s personal use. The US Department of Justice reported that $2 million from AML Bitcoin sales funded his luxury lifestyle, including real estate and high-end vehicles.

Asset Forfeiture and Restitution Plans

In addition to imprisonment, Andrade is required to forfeit assets to reimburse victims defrauded by AML Bitcoin. The court will determine the exact restitution amount on September 16. Following his prison term, Andrade will undergo three years of supervised release, including regular law enforcement check-ins to ensure compliance with court conditions.

Political Lobbyist Jack Abramoff’s Connection to AML Bitcoin

Jack Abramoff, a convicted political lobbyist, was ordered to pay $55,000 in disgorgement for promoting AML Bitcoin in 2020. He is permanently barred from participating in securities offerings. Abramoff’s criminal background includes fraud, tax evasion, and bribery related to Native American casino developments, underscoring the high-profile nature of AML Bitcoin’s promotion.

Why Did Prosecutors Seek a Longer Sentence?

Prosecutors requested a 17.5-year sentence, citing the extensive financial damage and deliberate deception Andrade caused. The final seven-year sentence reflects judicial discretion but still emphasizes the seriousness of cryptocurrency fraud. Andrade’s legal team had sought a significantly lighter sentence, highlighting the wide sentencing range in complex financial crimes.

Frequently Asked Questions

What is the AML Bitcoin fraud case about?

The AML Bitcoin fraud case involves Rowland Marcus Andrade deceiving investors with false claims about a cryptocurrency token, resulting in a $10 million loss and legal convictions for wire fraud and money laundering.

How does the sentencing impact future crypto fraud cases?

This sentencing highlights increased legal scrutiny on crypto scams and serves as a warning that fraudulent activities in the cryptocurrency space will face significant penalties and asset forfeiture.

Key Takeaways

• Conviction: Andrade found guilty of wire fraud and money laundering related to AML Bitcoin.
• Sentence: Seven years imprisonment with asset forfeiture for victim restitution.
• Broader Impact: Case underscores risks of crypto fraud and importance of investor vigilance.

Conclusion

The sentencing of Rowland Marcus Andrade for the AML Bitcoin fraud case reinforces the legal consequences of cryptocurrency scams. This case emphasizes the need for investor caution and regulatory vigilance in the evolving crypto market. COINOTAG will continue to monitor developments to provide authoritative updates on crypto fraud and enforcement actions.