Twenty-six-year-old Esteban
Cabrera Da Corte, the leader of a Miami crew, has pleaded guilty to defrauding
US banks and ‘a leading cryptocurrency exchange ‘ of over $4 million through fraudulent reversals. US prosecutors on Wednesday said Da Corte deployed false
and stolen identities to perpetrate the scheme.
According to Damian Williams,
the US Attorney for the Southern District of New York, Da Corte and his
co-conspirators in around March 2020 opened various accounts with an unnamed
crypto exchange using fake US passports, drivers’ licenses and stolen
personally identity information. These accounts were then linked to bank
accounts operated by Da Corte and his crew.
How the Scheme Was Run: DOJ
Furthermore, the Department of
Justice (DOJ) in the statement explained that Da Corte and his crew bought cryptocurrencies from the
crypto exchange using cash deposited into the bank accounts via Automated
Teller Machines (ATMs). However, this purchase of cryptocurrency was
immediately transferred to other digital asset wallets outside the exchange
and controlled by the crew.
After this process, the
prosecutors alleged that Da Corte and his team started to make phone calls to
their US bank account providers, falsely claiming that the cryptocurrency
transactions were unauthorized. As a result of their claims, the banks reversed the
purchases, prosecutors said.
“The operation of this scheme by
the Defendants resulted in US banks processing more than $4 million in
fraudulent reversals and the Cryptocurrency Exchange losing more than $3.5
million worth of cryptocurrency,” the DOJ added.
Man Faces Up to 20 Years in Prison
As a result of Da Corte’s guilty plea to conspiracy to commit wire fraud, he now faces up to 20 years in
prison, prosecutors said, adding that the crew leader has agreed to pay
approximately $3.6 million in restitution. In addition, he has agreed to forfeit $1.2
million.
“Our Office will continue to
work vigorously with our law enforcement partners to protect the integrity of
U.S. banks and financial markets to the full extent of the law from those who
seek to enrich themselves through fraud and deceit, including those who attempt
to shroud themselves in the anonymity of digital transactions,” said Williams.
FMA flags fraudulent broker; new FX pairs on Admirals; read today’s news nuggets.
Twenty-six-year-old Esteban
Cabrera Da Corte, the leader of a Miami crew, has pleaded guilty to defrauding
US banks and ‘a leading cryptocurrency exchange ‘ of over $4 million through fraudulent reversals. US prosecutors on Wednesday said Da Corte deployed false
and stolen identities to perpetrate the scheme.
According to Damian Williams,
the US Attorney for the Southern District of New York, Da Corte and his
co-conspirators in around March 2020 opened various accounts with an unnamed
crypto exchange using fake US passports, drivers’ licenses and stolen
personally identity information. These accounts were then linked to bank
accounts operated by Da Corte and his crew.
How the Scheme Was Run: DOJ
Furthermore, the Department of
Justice (DOJ) in the statement explained that Da Corte and his crew bought cryptocurrencies from the
crypto exchange using cash deposited into the bank accounts via Automated
Teller Machines (ATMs). However, this purchase of cryptocurrency was
immediately transferred to other digital asset wallets outside the exchange
and controlled by the crew.
After this process, the
prosecutors alleged that Da Corte and his team started to make phone calls to
their US bank account providers, falsely claiming that the cryptocurrency
transactions were unauthorized. As a result of their claims, the banks reversed the
purchases, prosecutors said.
“The operation of this scheme by
the Defendants resulted in US banks processing more than $4 million in
fraudulent reversals and the Cryptocurrency Exchange losing more than $3.5
million worth of cryptocurrency,” the DOJ added.
Man Faces Up to 20 Years in Prison
As a result of Da Corte’s guilty plea to conspiracy to commit wire fraud, he now faces up to 20 years in
prison, prosecutors said, adding that the crew leader has agreed to pay
approximately $3.6 million in restitution. In addition, he has agreed to forfeit $1.2
million.
“Our Office will continue to
work vigorously with our law enforcement partners to protect the integrity of
U.S. banks and financial markets to the full extent of the law from those who
seek to enrich themselves through fraud and deceit, including those who attempt
to shroud themselves in the anonymity of digital transactions,” said Williams.
FMA flags fraudulent broker; new FX pairs on Admirals; read today’s news nuggets.
Read More
A man from Antioch, Tennessee, has pleaded guilty in federal court to defrauding several banks and a prominent cryptocurrency exchange in a Ponzi-style scheme which caused a nearly $4 million loss.
According to court filings, Steven Nerayoff, 43, who goes by the nickname “Bitcoin millionaire,” orchestrated a multiyear scam that targeted nine banks, including Bank of America and U.S. Bank, as well as a leading cryptocurrency exchange. The fraudster allegedly used a company he owned and operated, FBinx LLC, to deceive the financial firms and the exchange.
Nerayoff reportedly convinced the victims to invest millions of dollars by misrepresenting the purpose of FBinx LLC and how the money would be used. He told the business he ran was affiliated with Bloq, another company he owned, and intended to use the funds to mine cryptocurrency.
However, according to the Department of Justice, the fraudster instead pocketed “a substantial portion” of the money for his own personal gain.
“The defendant misappropriated a substantial portion of his victims’ investments for his own personal gain, which supported a lavish lifestyle,” said U.S. Attorney Aaron L. Weisman of the Southern District of Tennessee. “Now, he faces a significant punishment for his crimes.”
The crypto exchange, an entity in the Netherlands, reported losing more than $2 million as a result of Nerayoff’s fraud.
The convicted financial criminal has been charged with bank fraud and wire fraud and faces up to 30 years in prison and a fine up to $1 million, as well as restitution. His sentencing date is yet to be determined.
This case serves as yet another reminder of the need for investors to conduct due diligence before entrusting their funds to any financial firm.
