Continuance granted in case about false statements regarding crypto scam OneCoin
David Pike is accused of making false statements before US authorities about funds derived from OneCoin.
The New York Southern District Court has granted a 30-day continuance in criminal proceedings about false statements concerning fraudulent cryptocurrency scheme OneCoin.
The case targets David R. Pike, the Chief Operating Officer of a purported private equity fund management company. That company managed a series of purported private equity funds known as the “Fenero Funds.” Rather than making legitimate private equity investments, the Fenero Funds served to launder the proceeds of a massive international pyramid fraud scheme involving the sale of a fraudulent cryptocurrency known as “OneCoin.”
Pike, the defendant, is alleged to have made materially false, fictitious, and fraudulent statements and representations, to wit, during a meeting with Special Agents from the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division, and representatives of the United States Attorney’s Office for the Southern District of New York. Pike is alleged to have falsely stated that he was not aware that approximately $400 million transferred into purported private equity funds that he helped to manage was derived from an international multi-level marketing scheme known as “OneCoin” or belonged to Ruja Ignatova, the leader of the scheme, when in fact fact, Pike was aware that the money belonged to Ruja Ignatova and that it was derived from OneCoin.
On November 13, 2019, the Court granted a request for continuance of the case against Pike until December 13, 2019. The parties are still discussing charges that may be brought in this case.
Let’s recall that, in September 2018, the Chief Executive Officer of the purported fund management company for the Fenero Funds, Mark S. Scott, was arrested on a sealed one-count Indictment filed in the Southern District of New York. The Indictment charged Scott with conspiracy to launder approximately $400 million of OneCoin fraud proceeds. Scott got another count added to his indictment in October 2019.
Pike and Scott are alleged to be responsible for managing approximately €450 million in the Fenero Funds. Ruja Ignatova was the ultimate beneficial owner of the money transferred into the Fenero Funds. In other words, all of the money belonged to Ignatova.
The trial of Mark Scott is currently proceeding at the New York Southern District Court.