Defendant in OneCoin case to oppose “conscious avoidance” charge

Maria Nikolova

Counsel for Mark Scott, who allegedly aided fraudulent crypto scheme OneCoin, is poised to oppose a “conscious avoidance” charge brought by the US authorities.

Several days after the United States Government filed its “Request to Charge” regarding Mark Scott, who allegedly aided and abetted the fraud committed by cryptocurrency scheme OneCoin, the defendant’s counsel submitted a Letter at the New York Southern District Court.

Among the charges mentioned by the US Government is the so-called “conscious avoidance”. The US authorities have explained that one may not willfully and intentionally remain ignorant of a fact material and important to his conduct in order to escape the consequences of criminal law. The law calls this “conscious avoidance” or “willful blindness.”

In other words, the Government can prove either that the defendant actually knew the objective of the conspiracy or he consciously avoided knowledge of the object of the conspiracy.

In their Letter filed on October 23, 2019, Counsel for the defendant provide comments on the Government’s request to charge. For most part, the defendant has no objection, or only limited proposed modifications, to charges proposed by the Government.

Mark Scott’s Counsel says:

“We expect to oppose a “conscious avoidance” charge and would propose to detail our opposition after the close of the Government’s case based on the factual record developed at that point. In the event such a charge is given, we believe it should be accompanied by a corresponding “good faith” charge that should be given in conjunction. We may also submit a defense theory charge at that time.”

Earlier in October, the US Government added one more count – Conspiracy to Commit Bank Fraud, to the indictment of Scott.

Scott, who was employed for a portion of the relevant time period as a partner at an international law firm, is accused of having organized, owned, operated a series of investment funds known as the “Fenero Funds,” which he used for the purpose of laundering OneCoin fraud proceeds. Scott is alleged to have engaged in a scheme to launder approximately $400 million of OneCoin proceeds through the Fenero Funds and related entities between approximately 2016 and 2018.

With regards to Count Two (Conspiracy to Commit Bank Fraud) of the Superseding Indictment, the Grand Jury charges that, from at least 2016 through in or about 2018, Mark Scott and others willfully conspired to commit bank fraud. It was a part of the conspiracy that Mark Scott and others executed a scheme to defraud a financial institution, and to obtain money and funds under the custody and control of such financial institution by means of false and fraudulent pretenses.

The trial of Mark Scott is set to start on November 4, 2019.

Read this next

Retail FX

Finalto sweetens offering for African traders with localized FX pairs

Finalto, the financial trading division of Gopher Investments, announced today that it has extended its offering with inclusion of a number of African Pairs to its trading platforms.

Digital Assets

BitMEX secures OAM registration to operate in Italy

Crypto exchange BitMEX has won regulatory approval from Italy’s financial regulators, allowing the exchange to continue serving Italian customers.

Institutional FX

FlexTrade integrates Glimpse’s post-trade bond execution data

“Looking further ahead, this integration also presents multiple opportunities for how fixed-income traders could leverage the trading data. For example, traders could tap Glimpse data as an input to AI-driven automation workflow strategies in the future.”

Industry News

FINRA fines UBS $2.5m for Reg SHO violations and supervisory failures

FINRA has fined UBS $2.5 million for Reg SHO violations and supervisory failures spanning a period of nine years.

Digital Assets

Bitfinex Pay launches feature that minimizes volatility risk

The currency conversion will take place every five minutes on any amount above $10.

Digital Assets

Mastercard launches Crypto Secure for risk assessment in digital asset space

“Crypto Secure will provide card issuers with a platform that allows them access to insights which will improve the safety of crypto purchases, increasing consumer confidence and creating the same trust they expect when paying with Mastercard.”

Retail FX

VT Markets wins 4 more awards including Best Forex Mobile App Global 2022

“Over the past few months, we have noticed a huge spike in downloads and daily active users on the VT Markets App. Our clients can trade multiple asset classes with ultra-low spreads, and access timely market news on our mobile app.”

Institutional FX

Blue Ocean ATS enhances price discovery and liquidity for after hours US stock trading

Liquidity and price discovery, missing from previous overnight trading solutions, are now possible utilizing the TNS network and managed service platform. Security of the private network and its access to all public clouds, uniformity of compliance and regulatory oversight, redundancy and recovery capabilities, plus the localized customer service around the world made TNS the best candidate for this major step in Blue Ocean Technologies’ growth.

Executive Moves, Retail FX

Equiti Group wins CySEC license to expand into Europe

“Regulation and good governance have always been and will continue to be a key part of Equiti’s business model.”