June 19, 2024
Crypto

Santa Monica Man in Cryptocurrency Case Sentenced to Four Months in Prison


LOS ANGELES (CNS) – A Santa Monica man who used his cryptocurrency cash exchange business to launder millions of dollars in criminal proceeds was sentenced Wednesday to four months behind bars.

Charles Randol, 33, was also ordered to serve two years of supervised release after he is released from federal prison, according to the U.S. Attorney’s Office.

He pleaded guilty in September to failing to maintain an effective anti-money laundering program.

From October 2017 to July 2021, Randol owned and operated a virtual- currency money services business known as Digital Coin Strategies LLC. The company offered cryptocurrency cash exchange services for a commission.

Randol met anonymous customers in person to complete transactions, controlling and operating a network of automated kiosks in Los Angeles, Orange and Riverside counties that converted cash to Bitcoin and vice versa. He also conducted Bitcoin-for-cash transactions for unknown people who mailed large amounts of U.S. currency to him, including to post office boxes that he controlled, papers filed in Los Angeles federal court show.

Randol admitted in his plea agreement to repeatedly violating federal law and his company’s own policies by facilitating suspicious currency exchange transactions and taking steps to conceal them from law enforcement.

For example, Randol frequently conducted in-person cash transactions that exceeded $10,000 with anonymous or pseudo-anonymous individuals, including people Randol knew only by such monikers as Puppet Shariff, White Jetta, Yogurt Monster and Hood.

In his plea agreement, Randol admitted to engaging in specific transactions from October 2020 to January 2021 in which he exchanged a total of $273,940 in cash for Bitcoin without requesting a name, proof of identity, Social Security number or any other information about the buyer or the source of the funds being exchanged — all violations of the Bank Secrecy Act.

Randol also allowed criminals to structure and launder funds through his Bitcoin kiosks in malls, gas stations and convenience stores in Los Angeles, Glendale, Santa Clarita, Huntington Beach, Santa Ana and Riverside, prosecutors said.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent. View more
Accept
Decline