The US extradited a British fraudster who earned $36 million on the interest in bitcoin
The FBI on April 13 announced that 49-the summer citizen of great Britain Renwick, Haddo was extradited to the United States from Morocco. In the southern district court of new York he will be charged with misappropriation of more than $36 million, which misled investors invested in the company Bitcoin Store and Bar Works.
Haddow, was arrested in Morocco on pre-order in July 2017 after the SEC filed against him charges of fraud. Presumably, he used the sales representatives who made cold calls to investors and sold securities of his companies. Their participation in projects he did not advertise because of their own dark past.
According to the SEC complaint, in advertising materials presented to investors, has been specified a non-existent upper management, as well as distorted other key facts about the company's activities. Haddow, allegedly misappropriated more than 80% of the funds raised by the Bitcoin Store (where they are now unknown). In addition, he sent more than $4 million from the Bank accounts of Bar Works to Mauritius, and also placed $1 million in Morocco.
In the materials presented to potential investors Store Bitcoin, it was argued that it was "a simple and secure way of storing and selling bitcoin," and that has been achieved the gross turnover of several million dollars.
However, according to the SEC, this company has never had any real activities or announced sales. For example, in 2015 to the Bank accounts of the Bitcoin Store did less than $250 000 incoming remittances and, it seems, any payment from the real customer. To hide his involvement in the operations of these companies, Haddow used the pseudonym Jonathan black. He also wrongly claimed that he has a huge experience in the field of Finance.
Andrew M. Calamari, Director of the new York regional office SEC, at the time, said:
As indicated in our complaint, Haddow created two new-fangled company and misled investors, claiming that senior and experienced leaders will lead them to a quick profit. Haddow management company from behind the scenes, and in fact they were far from profitability.
Haddow indicted on two counts of fraud, each of which provides till 20 years of imprisonment.