Monday, April 14, 2014

Feds Turn Up The Heat: Charlie Shrem and Robert M. Faiella Indicted in Bitcoin Money Laundering Case

Federal prosecutors from the Southern District of New York have filed a four count indictment against Charlie Shrem and Robert M. Faiella. On January 27, 2014, Charlie Shrem and Robert M. Faiella were arrested by F.B.I. agents for allegedly engaging in a scheme "to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site, Silk Road." Since then, lawyers representing Shrem and Faiella engaged in discussions with prosecutors in a possible attempt to negotiate plea bargain agreements for his clients. Prosecutors delayed filing indictments in the case. Apparently, prosecutors are not satisfied with the progress of the talks and are turning up the heat on Shrem and Faiella by filing an indictment.

Written by:

Sam E. Antar

Download:

USA vs USA v Robert M. Faiella and Charlie Shrem - Indictment


Disclosure

I am a convicted felon and a former CPA. As the criminal CFO of Crazy Eddie, I helped my cousin Eddie Antar and other members of his family mastermind one of the largest securities frauds uncovered during the 1980's. I committed my crimes in cold-blood for fun and profit, and simply because I could. If it weren't for the heroic efforts of the FBI, SEC, Postal Inspector's Office, US Attorney's Office, and class action plaintiff's lawyers who investigated, prosecuted, and sued me, I would still be the criminal CFO of Crazy Eddie today. I do not want or seek forgiveness for my vicious crimes from my victims. My past sins are unforgivable.

There is a saying, "It takes one to know one." I've provided professional work for the FBI, IRS, SEC, Justice Department, and other federal and state law enforcement agencies in training them to identify fraud and catch white-collar criminals. Often, I refer cases to them as an independent whistleblower. I teach white-collar crime classes for various government entities, professional organizations, businesses, and colleges and universities. I provide forensic accounting services for law firms and other clients.

I do not own any Bitcoins and have no affiliation with Charlie Shrem, or Robert M. Faiella.

Thursday, March 20, 2014

Update on Bitcoin Money Laundering Case: Both Defendants Are Talking to the Feds

On January 27, 2014, Charlie Shrem and Robert M. Faiella were arrested by F.B.I. agents for allegedly engaging in a scheme "to sell over $1 million in Bitcoins to criminals bent on trafficking narcotics on the dark web drug site, Silk Road." On March 2, 2014, this blog reported that court documents were filed revealing that Shrem's lawyer Marc Agnifilo was engaged in discussions with federal prosecutors in a possible attempt to negotiate a plea bargain for his client. At the time, no court documents were filed indicating that Faiella's attorney David Braun was also engaged in similar discussions with prosecutors. On March 14, 2014, new court documents were filed revealing that Braun had been talking to federal prosecutors "beginning on February 10, 2014 and continuing as recently as March 7, 2014."

Therefore, we know that lawyers for both defendants are talking to the Feds. It is unclear which lawyer was the first one to engage in discussions with federal prosecutors. As I detailed above, Faiella's attorney started negotiating with prosecutors on February 10. However, court filings reveal that Shrem's attorney started negotiating with prosecutors "in early February 2014." Are Shrem and Faiella engaged in a race to cut the first deal with the Feds? Based on my past experiences, I have no doubt that prosecutors are playing one defendant against the other.

Robert M. Faiella has not been talking to the press, while Charlie Shrem has been very vocal about the charges against him. Faiella is playing it smart. Shrem is not helping himself by being publicly "defiant" while his lawyer is engaging in negotiations with prosecutors.

Written by:

Sam E. Antar

Download:

USA v Robert M. Faiella - Sealed Complaint

USA v Charlie Shrem - Application for Order of Continuance

USA v Robert M. Faiella- Application for Order of Continuance


Disclosure

I am a convicted felon and a former CPA. As the criminal CFO of Crazy Eddie, I helped my cousin Eddie Antar and other members of his family mastermind one of the largest securities frauds uncovered during the 1980's. I committed my crimes in cold-blood for fun and profit, and simply because I could. If it weren't for the heroic efforts of the FBI, SEC, Postal Inspector's Office, US Attorney's Office, and class action plaintiff's lawyers who investigated, prosecuted, and sued me, I would still be the criminal CFO of Crazy Eddie today. I do not want or seek forgiveness for my vicious crimes from my victims. My past sins are unforgivable.

There is a saying, "It takes one to know one." I've provided professional work for the FBI, IRS, SEC, Justice Department, and other federal and state law enforcement agencies in training them to identify fraud and catch white-collar criminals. Often, I refer cases to them as an independent whistleblower. I teach white-collar crime classes for various government entities, professional organizations, businesses, and colleges and universities. I provide forensic accounting services for law firms and other clients.

I do not own any Bitcoins and have no affiliation with BitInstant, Charlie Shrem, or Robert M. Faiella.

Monday, March 03, 2014

Is Indicted Bitcoin Millionaire Charlie Shrem Negotiating A Plea Bargain With The Feds?

Updated

Is BitInstant CEO Charlie Shrem, who was arrested for allegedly helping launder $1 million Bitcoins related to Silk Road drug trafficking, in discussions with federal prosecutors regarding a possible plea bargain?

According to an "Order of Continuance" filed in Federal Court filed on February 26, 2014:

It is further found that Marc Agnifilo, Esq. counsel for defendant, and Assistant United States Attorney Serrin Turner have been engaged in, and are continuing, discussions concerning a possible disposition of this case;
It is further found that, the Government has requested a continuance of 30 days to engage in further discussions with counsel about the disposition of this case and that the defendant, through counsel, has consented that such a continuance may be granted for that purpose and has specifically waived the right to be charged in an indictment or information for an additional 30 days.
Charlie Shrem originally proclaimed his innocence and is under house arrest. According to a recent exclusive interview in CoinDesk, Shrem claimed his arrest was part of a government conspiracy to "damage the public's perception of bitcoin."

Written by:

Sam E. Antar

Download USA v Shrem - Order of Continuance

Disclosure

I am a convicted felon and a former CPA. As the criminal CFO of Crazy Eddie, I helped my cousin Eddie Antar and other members of his family mastermind one of the largest securities frauds uncovered during the 1980's. I committed my crimes in cold-blood for fun and profit, and simply because I could. If it weren't for the heroic efforts of the FBI, SEC, Postal Inspector's Office, US Attorney's Office, and class action plaintiff's lawyers who investigated, prosecuted, and sued me, I would still be the criminal CFO of Crazy Eddie today. I do not want or seek forgiveness for my vicious crimes from my victims. My past sins are unforgivable.

There is a saying, "It takes one to know one." I've provided professional work for the FBI, IRS, SEC, Justice Department, and other federal and state law enforcement agencies in training them to identify fraud and catch white-collar criminals. Often, I refer cases to them as an independent whistleblower. I teach white-collar crime classes for various government entities, professional organizations, businesses, and colleges and universities. I provide forensic accounting services for law firms and other clients. Recently, I've helped the AICPA Fraud Task Force develop better methods for detecting fraud.

I do not own any Bitcoins and have no affiliation with BitInstant or Charlie Shrem.

Wednesday, February 05, 2014

Thoughts on Multi-Level Marketing, Fraud, and Insider Trading from a Convicted Felon

Yesterday, I was interviewed by Erin Ade, the host of "Boom Bust" on RT News. Topics discussed include:

  • Multi-level marketing companies such as Herbalife (NYSE: HLF) which has been accused of being an illegal pyramid scheme by hedge fund manager Bill Ackman
  • JPMorgan Chase (NYSE: JPM) CEO Jaime Dimon's 74% raise shortly after the company agreed to pay over $14 billion to settle various criminal probes
  • Ongoing criminal trial of former SAC Capital Portfolio Manager Mathew Martoma for insider trading.

Please watch the video below, which of course includes very colorful commentary.



Written by:

Sam E. Antar

Disclosure

I am a convicted felon and a former CPA. As the criminal CFO of Crazy Eddie, I helped my cousin Eddie Antar and other members of his family mastermind one of the largest securities frauds uncovered during the 1980's. I committed my crimes in cold-blood for fun and profit, and simply because I could. If it weren't for the heroic efforts of the FBI, SEC, Postal Inspector's Office, US Attorney's Office, and class action plaintiff's lawyers who investigated, prosecuted, and sued me, I would still be the criminal CFO of Crazy Eddie today. I do not want or seek forgiveness for my vicious crimes from my victims. My past sins are unforgivable.

There is a saying, "It takes one to know one." I've provided professional work for the FBI, IRS, SEC, Justice Department, and other federal and state law enforcement agencies in training them to identify fraud and catch white-collar criminals. Often, I refer cases to them as an independent whistleblower. I teach white-collar crime classes for various government entities, professional organizations, businesses, and colleges and universities. I provide forensic accounting services for law firms and other clients. Recently, I've helped the AICPA Fraud Task Force develop better methods for detecting fraud.

I do not own any Herbalife of JPMorgan Chase securities long or short.

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