In the evening, on June 21st, the organizer of the financial cryptocurrency pyramid, Patrick McDonnell, pleaded guilty in a court in the Eastern District of New York. The fraud called Coin Drop Markets has collected more than 200 thousand US dollars from investors.
Coin Drop Markets – financial pyramid
The organizer of the financial pyramid, Patrick McDonnell, confessed to the deed on Friday evening. The Federal Court for the Eastern District of New York sentenced the defendant to 20 years in prison for a financial pyramid and fraudulent activities under 9 articles. The corresponding document was published on June 21, 2019 on behalf of the Department of Justice, the Central Office of the United States Attorney, Eastern District of New York.
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Coin Drop Markets (CDM) currency fraud, according to a lawsuit from investors, attracted more than 20 thousand dollars, including: 194,000 dollars in fiat currency and 4.41 BTC, 206 LTC, 620 ETC and 1,342,634 Verge cryptocurrency. Patrick McDonnell conducted criminal activities under the false name of Jason Flack.
The scam lasted from November 2014 to December 2018. The defendant, according to a court report, offered clients to make deposits at an incredibly high profit ratio — more than 300% in seven days. In addition, the defendant forged financial statements and documents of approval of local financial regulators, as well as licenses about the legality of the enterprise.
Coin Drop Markets (CDM) work system was no different from the usual financial pyramid. That is, the funds of new investors were paid to early investors. Also during the forensic examination of McDonnell reports, it was revealed that the fraudster used most of the funds for personal purposes.
Work on the capture of a fraudster lasted from 2018. It was then that the site of the financial pyramid was removed, and pages in social networks were blocked. After that, investors filed a class action lawsuit – as a result of which it turned out that the accused stole a huge amount of money. McDonnell was detained, and after a few months of investigative actions, he admitted his guilt.
20 years in prison for a Coin Drop Markets financial pyramid. Recall that last week hacker attacks suspended the work of the National Bank of Ukraine. The identity of the attackers were not disclosed. Conducted investigative actions.
Editor: Pereyidenko Ihor