Sentencing of OneCoin co-conspirator may be postponed again

Maria Nikolova

The sentencing of Mark Scott may be adjourned until May 26, 2020, as per a request filed with the New York Southern District Court today.

The sentencing of Mark Scott, an individual linked to fraudulent cryptocurrency scheme OneCoin who was convicted of conspiracy to commit money laundering and conspiracy to commit bank fraud may be postponed again, as indicated by the latest filings with the New York Southern District Court.

Today, the Government submitted a letter on behalf of the parties to request an adjournment of the current post-trial briefing schedule and sentencing date for Mark Scott. Specifically, the Government requests a three-week adjournment to the current deadline for its opposition brief to Scott’s motion for acquittal or in the alternative, a new trial. The defense also requests a period of three weeks to submit its reply brief, and requests that the sentencing date be adjourned until May 26, 2020 or a date thereafter.

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 lawsuit continues at the New York Southern District Court.

Read this next

Digital Assets

Luxembourg’s regulator warns on false regulation of Crypto Capital Profits

The regulator of Luxembourg’s financial markets, the Commission de Surveillance du Secteur Financier (CSSF), has warned that a firm claiming to be authorized under the name Crypto Capital Profits is in fact not licensed to carry out business from within its jurisdiction.

Institutional FX

FINRA fines Wedbush $900K over reporting violations

The Financial Industry Regulatory Authority continues to take disciplinary actions against financial services firms for providing inaccurate securities trading information.

Digital Assets

Bitkub investigated by Thai regulator in ‘wash trading’ case

Thailand’s Securities and Exchange Commission has targeted Bitkub over allegations of inaccurate reporting and wash trading on its cryptocurrency platform.

Crypto Insider

Crypto.com secures approval to launch its services in France

Crypto.com has registered its cryptocurrency services with the dual regulatory structure in France, which includes the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).

Inside View

How to offer iOS compliant trading apps? Editorial by Chris Rowe

Webtraders are becoming increasingly important for FX and CFD brokers as more and more of their clients are trading using their mobiles. 

Institutional FX

SpiderRock deploys Eventus trade surveillance for futures and options offering

“As we have begun to provide direct market access as a routing broker and grown in our futures offering, which is subject to a different regulator, we wanted to make sure we chose a trade surveillance platform that has all the tools that we need, a format we can review easily, and capabilities to demonstrate to regulators that we have the proper trade surveillance procedures in place. Validus checks all the boxes for us.”

Industry News

Space and Time raises $20 million to grow its decentralized data warehouse

“We look forward to seeing the ways in which Space and Time will allow the business logic in centralized systems to be automated and connected directly to smart contracts.”

Digital Assets

Mastercard, hi app partner to issue cards with NFT avatars

In partnership with Mastercard, crypto and fiat financial app hi is launching what it calls “the world’s first debit card featuring NFT avatar customization.”

Digital Assets

Wirex to support government of Uzbekistan to adopt blockchain

“We’re excited to work alongside the Uzbekistan Direct Investment Fund in order to help the sector thrive, enrich the financial ecosystem there and set a benchmark for other countries, and ultimately expand.”

<