In a landmark case underscoring the legal ramifications of illicit cryptocurrency activities, the US Attorney for 2 Districts of the US, Guam and the Mariana Islands, announced the sentencing of a fraudster. The defendant, Julien Abat Weymouth, 32 years old, from Dededo, Guam has been sentenced to prison. The crypto broker is sentenced to a 30 months imprisonment for operating unlawful money-transmitting business, a violation of 18 U.S.C. 1960. Additionally, the Court imposed 3 years of supervised release after imprisonment and a $100 special assessment fee.
Guam Attorney General Uncovers the Unlawful Money Transmitting Scheme of the Crypto Broker
From Jan 2020 to April 2021, Weymouth orchestrated an unlawful money transmitting scheme centered on the exchange and transfer of crypto, predominantly Bitcoin. Soliciting cash and crypto locally and internationally, Weymouth transferred BTC to a third-party, William Ichioka, for purported investment activities. Notably, Ichioka operated a fake investment scheme called Ichioka Ventures and faced separate prosecution in the Northern District of California.
Promising clients a fixed percentage return on their purported investments, Weymouth retained surplus returns beyond the guaranteed rate as fee. Furthermore, Weymouth accepted funds and crypto from individuals engaged in illegal activities. Despite operating as a crypto exchanger and facilitating fund transfers for a fee, Weymouth failed to register with the FinCEN and comply with federal regulations that govern money transmitters.
Over the course of his scheme, Weymouth used to transmit funds and crypto totaling above $5,517,323, amassing considerable personal profits. These profits were reinvested in various forms of crypto, deposited into bank accounts, and utilized to purchase vehicles and other types of assets. As part of the plea agreement, Weymouth agreed to forfeit over 200 BTC with a present value exceeding $8M. Moreover, he agreed to forfeit 6 vehicles, and $127,000 held in a PenFed bank account.
Government Commitment to Combat Cryptocurrency Fraud and Enforcement Efforts
United States Attorney Anderson remarked that cryptocurrencies are frequently used to facilitate fraudulent activities. He emphasized that despite the perception of anonymity, these financial assets do not protect criminals from being held accountable. He stated that their office is committed to targeting unlicensed funds transmitting, money laundering, and other unlawful transactions.
Neal de Paz, Resident Agent in Charge at the Secret Service Guam Office, emphasized their dedication to safeguarding citizens within the Districts of Guam and Mariana Islands. De Paz thanked federal law enforcement partners, including the US Attorney’s Office and Guam PD, for their collaborative efforts in the investigation’s success.
The case was meticulously investigated by the US Secret Service and prosecuted by Benjamin Petersburg, Assistant US Attorney in Guam. This sentencing highlights the consequences of unlawful cryptocurrency activities, emphasizing the need for regulatory compliance in the digital asset landscape.