US authorities allege OneCoin-linked individual participated in conspiracy to commit bank fraud

Maria Nikolova

David Pike was Chief Operating Officer of “Fenero Funds,” which served to launder the proceeds of a scheme involving the sale of a fraudulent cryptocurrency known as “OneCoin.”

There have been more developments in the criminal proceedings targeting a number of individuals linked to international cryptocurrency scam OneCoin. According to Court filings made available to FinanceFeeds earlier today, David Pike, one of the individuals linked to the scam, has waived, in open Court, prosecution by indictment and has consented that the proceeding may be by information instead of by indictment.

David R. Pike was 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 the scheme involving the sale of “OneCoin.”

The Superseding Information signed by US Attorney Geoffrey Berman lists one count – conspiracy to commit bank fraud.

In particular, from at least in or about 2016 through in or about 2018, in the Southern District of New York and elsewhere, Pike and others combined, conspired, confederated, and agreed together and with each other to commit bank fraud, in violation of Title 18, United States Code, Section 1344.

It was a part and object of the conspiracy that Pike and others executed a scheme to defraud a financial institution, the deposits of which were then insured by the Federal Deposit Insurance Corporation (“FDIC”), and to obtain moneys, funds, credits, assets, securities, and other property owned by, and under the custody and control of, such financial institution, by means of false and fraudulent pretenses, representations, and promises. Pike and others misrepresented and omitted material facts to banks and other financial institutions worldwide to cause those financial institutions, including FDIC-insured financial institutions in the United States, to transfer funds into and out of accounts associated with purported investment funds operated by Pike and others, in violation of Title 18, United States Code, Section 1344.

In or around June 2016, an unnamed co-conspirator misrepresented material facts to an FDIC-insured bank in Manhattan, New York and thereby caused the Manhattan Bank to transfer approximately $5 million into a purported investment fund operated by Pike, the defendant, and others.

On or about August 9, 2016, Pike sent an email to co-conspirator Mark S. Scott, stating,

“They are going to make a move too soon and send up flags that will disrupt the delicate process of attempting to scrub Ruja [Ignatova] if they keep this up. You are playing a very delicate game quite well, I am impressed.”

On or about December 4, 2018, Pike made false statements during a meeting with federal law enforcement agents, when he stated he was not aware that approximately $400 million transferred into purported private equity funds that Pike helped to manage was derived from an international multi-level marketing scheme known as “OneCoin” or belonged to Ruja Ignatova, the leader of that scheme, In fact, Pike was aware that the money belonged to Ruja Ignatova and that it was derived from the OneCoin multi-level marketing scheme.

As a result of committing the offense alleged in Count One (Conspiracy to Commit Bank Fraud) of the Superseding Information, Pike will have to forfeit to the United States any and all property constituting, or derived from, proceeds obtained directly or indirectly, as a result of the commission of said offense, including but not limited to a sum of money in United States currency representing the amount of proceeds traceable to the commission of said offense.

Read this next

Retail FX

Stephen Kalayjian launches educational and community platform TradeEZ

TradeEZ has partnered with online broker TradeZero to provide chart overlays that can be accessed on the TradeZero platform. In the future, the firm will be looking to partner with some of the largest firms around the world.

Retail FX

LiteFinance launches new mobile app on Google Play

The mobile app allows users to trade and copy professional traders’ positions and gain access to trading chat rooms.

Technology

ECXX taps OneTick for data management and analytics

OneTick is asset class-agnostic and currently has customers across FX, equities, futures, CFDs, FI, and options.

Industry News

$1.5 million: SEC fines BNY Mellon Investment Advisor for misstatements and omissions about ESG

Investors are increasingly focused on ESG considerations when making investment decisions.

Digital Assets

Mercuryo reaches 3 million users amid crypto payments’ US and Asia expansion

“The opportunities for linking crypto and fiat currencies are abundant. From crypto projects that require fiat solutions (like fiat on and off ramps and IBANs), through to crypto for traditional fiat systems, and solutions for fintech companies that enable clients to buy or sell crypto within their own infrastructure.”

Retail FX

Maltese watchdog warns of bogus broker Perfect Choice Trade

The Malta Financial Services Authority (MFSA), the regulator responsible for the oversight of the forex  sector in the Mediterranean island, today issued a warning against a forex broker that offers its services without having the authorization to do so.

Digital Assets

Dukascopy warns of fake website impersonating its cryptocurrency

Switzerland’s forex bank and broker, Dukascopy, today warned against a fraudulent website that have been falsely claiming affiliation with its ‎authorized brand.‎

Uncategorized

Freetrade raises £30 million to fund business expansion

Freetrade, which calls itself a challenger stockbroker, has raised £30 million in debt financing led by a clutch of existing investors.

Digital Assets

Crypto assets under management at lowest point since July 2021

Crypto investment products registered outflows for a second consecutive week, the bulk of which came from bitcoin funds, according to data from digital asset manager CoinShares.

<