A U.S. court has convicted Jerry Ji Guo, a resident of San Francisco, to a six-month prison sentence for his part in a fraudulent initial coin offering (I.C.O.). Aside from the prison term, the court required Guo to pay over $4 million in restitution. Moreover, Guo will also assist the government in the description and return of the stolen property.
Embezzlement of Client Funds
In a statement, the United States Department of Justice (D.O.J.) says Guo, who pleaded guilty on August 26, 2019, had exhibited himself “as an I.C.O. consultant and promised his clients he would perform marketing and publicity services.” Nevertheless, instead of meeting his promises, Guo “embezzled the clients’ cash and cryptocurrency.”
As court documents show, a U.S. grand jury initially indicted Guo on November 15, 2018, charging him with “eight counts of wire fraud, in violation of 18 U.S.C. § 1343.” However, the statement says Guo only pleaded guilty to one count while the rest of the charges were dismissed.
Victim Compensation
Meantime, in his remarks, the United States Attorney David L. Anderson recommends that the country’s law enforcement has now caught up with crypto criminals.
He stated that:
Some criminals believe mistakenly that cryptocurrency is beyond the reach of law enforcement. This case shows we can use criminal forfeiture to compensate fraud victims even when cryptocurrency is used in the fraud.
As stated in the D.O.J. statement, after Guo’s indictment, the government went on to take a “stipulated application for a preliminary order of forfeiture” on November 14, 2019. Moreover, the government also obtained warrants to seize the stolen cash and cryptocurrency. They also obtained a “final order of forfeiture against the stolen property” on February 26, 2020.
While the D.O.J. report goes on to say that the Money Laundering and Asset Recovery Section, an element of the D.O.J.’s Criminal Division, “will use the victim restoration process to return stolen property to victims.”
For up-to-date Cryptocurrency, Blockchain, and Crypto-mining news, please join our Telegram Channel
No Comment