SAN JOSE – Jerry Ji Guo was sentenced in the present day for his position is a scheme to defraud his purchasers of money and cryptocurrency in reference to an preliminary coin providing, introduced United States Lawyer David L. Anderson and Federal Bureau of Investigation Particular Agent in Cost Craig D. Honest. Guo was ordered to pay $4,392,636.14 in restitution, and was sentenced to a time period of six months in jail. The sentence was handed down by the Honorable Beth Labson Freeman, U.S. District Decide.
Guo, 33, of San Francisco, pleaded responsible to the cost on August 26, 2019. In pleading responsible, Guo admitted he represented himself as an preliminary coin providing marketing consultant and promised his purchasers he would carry out advertising and marketing and publicity providers. Fairly than carry out these providers, Guo embezzled the purchasers’ money and cryptocurrency.
“Some criminals imagine mistakenly that cryptocurrency is past the attain of regulation enforcement,” stated U.S. Lawyer Anderson. “This case reveals we will use felony forfeiture to compensate fraud victims even when cryptocurrency is used within the fraud.”
“The FBI is tasked with pursuing crimes and the varied means and strategies that criminals use to commit these crimes,” stated FBI San Francisco Particular Agent in Cost Craig D. Honest. “Within the monetary sector, cryptocurrency has emerged as a big risk because it affords criminals with an area to conduct exercise that’s notably tough to hint and detect,” he stated. “On this case, the FBI relied upon companions within the non-public sector to reply appropriately to authorized course of so the FBI might make efforts to find and seize stolen cryptocurrency.”
A federal grand jury indicted Guo on November 15, 2018, charging him with eight counts of wire fraud, in violation of 18 U.S.C. § 1343. Guo pleaded responsible to 1 depend and the remaining counts have been dismissed.
Along with pleading responsible, Guo agreed to cooperate with the federal government within the identification and return of property by the forfeiture course of. On November 14, 2019, the federal government obtained a stipulated software for a preliminary order of forfeiture. Additional, the federal government obtained warrants to grab the stolen money and cryptocurrency, and on February 26, 2020, obtained a ultimate order of forfeiture towards the stolen property. Accordingly, the federal government now is able to return the stolen property to the victims.
In keeping with papers filed by the federal government, the present worth of the money and cryptocurrency is now estimated to be greater than $20 million. The Cash Laundering and Asset Restoration Part, a part of the Division of Justice’s Legal Division in Washington, D.C., will use the sufferer restoration course of to return stolen property to victims.
Along with the jail time period and restitution, Decide Freeman additionally sentenced the defendant to a three-year interval of supervised launch.
Assistant United States Attorneys Daniel Kaleba and Chris Kaltsas prosecuted the case with the help of Elise Etter. The prosecution is the results of an investigation by the FBI.