A cryptocurrency entrepreneur has been found guilty of executing a deceitful "pump and dump" scheme linked to disgraced casino lobbyist Jack Abramoff.
A federal jury in Northern California discovered Rowland Marcus Andrade guilty of wire fraud and money laundering last Wednesday, relating to the initial coin offering (ICO) of “AML Bitcoin” in 2017 and 2018.
AML Bitcoin is among the earliest and most enduring crypto pump-and-dump instances involving federal prosecutors.
Abramoff, a co-conspirator with Adrade in the case, admitted guilt in 2020 to fraud and breaching the Lobbying Disclosure Act. He was instructed to pay $50K in disgorgement and interest, but he avoided prison time. Andrade could receive a sentence of up to 30 years when he is sentenced later this year.
‘Superior to Bitcoin’
Andrade established the Nevada-based NAC Foundation, which garnered a minimum of $5.6 million from numerous investors in AML Bitcoin. According to court documents, he inaccurately asserted that the cryptocurrency was technologically advanced compared to the original Bitcoin and that several government agencies were in talks to adopt it.
The allegations included that AML Bitcoin possessed anti-money laundering, anti-terrorism, and theft-resistant features integrated within the coin on NAC’s purported "privately regulated public blockchain," which prosecutors stated did not exist.
Andrade claimed that the Panama Canal Authority was on the verge of permitting the currency's use for vessels transiting the Panama Canal, despite no such agreement being in place.
This was a marketing tactic aimed at increasing the token's trading volume and price, enabling Andrade to siphon off over $2 million in earnings when it peaked. According to prosecutors, he used the funds for personal expenditures, which included two homes in Texas and two high-end cars.
Who is Jack Abramoff, known as 'Casino'?
Abramoff assisted in advancing the deceitful investment plan via lobbying and advertising. He is more famously associated with a federal corruption case from the early 2000s that involved cheating Native American tribes out of millions by excessively billing for lobbying services that were meant to support their gaming rights while covertly undermining their interests.
The formerly powerful lobbyist also participated in the dishonest acquisition of a fleet of casino cruise ships, SunCruz. He utilized a fraudulent wire transfer to deceive lenders into thinking he and his accomplice, Adam Kidan, had made a $23 million down payment on the fleet to secure a $60 million loan.
In 2006, Abramoff admitted to fraud, conspiracy, and tax evasion and received a six-year prison sentence. He spent 43 months in service before his release in 2010.
His adventures were portrayed in the movie ‘Casino Jack,’ featuring Kevin Spacey. His actions also resulted in significant changes within the lobbying sector.
Abramoff's guilty verdict in the AML Bitcoin case made him the first individual convicted of breaching the revised Lobbying Disclosure Act, which underwent significant changes in 2007 due to his earlier wrongdoing.
