OneCoin co-conspirator sentencing gets postponed again

Maria Nikolova

The sentencing of Mark Scott, convicted of of conspiracy to commit money laundering and conspiracy to commit bank fraud, is rescheduled for May 26, 2020.

The criminal proceedings against individuals linked to fraudulent cryptocurrency scheme OneCoin continue at the New York Southern District Court.

On February 18, 2020, Judge Edgardo Ramos granted a request by the parties to reschedule the deadlines concerning the sentencing of Mark Scott, who was convicted of conspiracy to commit money laundering and conspiracy to commit bank fraud in November. The sentencing of Scott is now postponed until May 26, 2020.

Scott, a former equity partner at the law firm Locke Lord LLP, laundered approximately $400 million in proceeds of OneCoin through fraudulent investment funds that he set up and operated for that purpose. Scott was paid more than $50 million for his money laundering services, which he used to buy luxury cars, a yacht, and several seaside homes.

As FinanceFeeds reported earlier in February, Scott has pushed for acquittal. The Government’s evidence that OneCoin activities extended into the United States was extremely limited, Scott said. He adds that Konstantin Ignatov, the Government’s only cooperating witness, said nothing of any OneCoin activities in the United States. To show any contact with the U.S. whatsoever, the Government relied almost entirely on the testimony of two individuals who purchased OneCoin, William Horn and Linda Cohen, Scott argued. Neither Horn nor Cohen ever met Scott or had any knowledge of him whatsoever.

According to Scott, the Government provided no evidence that funds that Cohen and Horn invested in OneCoin were transferred to the Fenero Funds.. Likewise, according to Scott, the Government failed to show that funds from any United States residents, were transferred into any accounts Scott maintained or to which he had access.

Scott argues that there was no testimony by any witness that (1) Scott had anything to do with OneCoin sales, much less sales in the United States or (2) that Scott had any belief that OneCoin was violating any criminal laws.

Scott also insists that the jury instructions on both the bank fraud and money laundering counts were wrong on key points, permitting the jury to convict him based on conduct that would not violate the statutes in question. Even if the Government had provided sufficient proof of the charged offenses a new trial would be required to cure these instructional errors, Scott says.

The Government is expected to respond to Scott’s arguments by March 16, 2020.

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