Federal prosecutors indicted Reginald Fowler, 60, of Arizona and Ravid Yosef, 36, of Tel Aviv on grounds of hiding the true nature of hundreds of millions of dollars transferred in and out of their several bank accounts around the world, reported Bloomberg May 1, 2019.
Fowler Arrested while Yosef Remains on the Run
The New York Attorney General charged Fowler and Yosef for failing to comply with the account-opening procedures. They were accused of providing misleading information to open multiple bank accounts across different countries on behalf of several companies with whom they had collaborated.
The two had also been involved in buying and selling cryptocurrencies from peers and exchanges around the world. Notably, the duo misrepresented the fund transfers to their banks as the proceeds of a real estate deal.
The court papers also accused the two of operating a scheme that lasted less than a year but took huge sums of money from people from across Hong Kong, Germany, Australia, Turkey, and the United Arab Emirates.
The official announcement read:
“Records from Bank-1 reveal that dozens of individuals from various countries wired millions of dollars into Account-1, and, at the same time, Account-1 also wired millions of dollars to other individuals and companies.”
The report accused Fowler that though he was receiving and directing such huge monetary transactions, neither he nor any company registered to his name was licensed as a money transmitting business, as is required under the federal law.
Fowler was arrested on April 30 and had a hearing due on the same day in Phoenix while Yosef remains on the run. As of late, a number of different local authorities have been cracking down on crypto-related crimes.
On February 4, 2019, BTCManager reported the indictment of a 20-year old by the Manhattan District Attorney General under claims of using SIM swapping to steal funds and identity. In the month of April, the New York Attorney General also accused the cryptocurrency company Bitfinex of trying to cover $851 million loss in clients and corporate funds.
Furthermore, the Attorney’s Office District of Oregon charged two Nigerian nationals, Kelvin and Usifoh, for operating a bitcoin scam that defrauded investors of more than $270,000.