The cryptocurrency space has seen its fair share of scams and Ponzi’s that too with the criminals successfully getting away with funds in most cases. This, however, isn’t the case with Jack Abramoff, co-schemer of fraudulent ICO AML Bitcoin and a disgraced Washington lobbyist from former President George W. Bush’s administration. The notorious lobbyist has recently pleaded guilty of charges against him.
Abramoff, along with the founder of the fraud scheme Rowland Marcus Andrade, executed a token sale via a Nevada-based company called the NAC foundation. The foundation allegedly raised more than $5.6 million for the ICO for AML Bitcoin from August 2017 and throughout 2018, during the time when ICO’s were a popular investment.
The SEC on June 25 charged the AML Bitcoin issuer, following up on a criminal filing from San Fransico from June 22. The complaint alleged that the guilty “repeatedly misled investors into funding non-existent technology.”
According to the latest court filing, Abramoff has pleaded guilty to charges against him that include conspiring to defraud investors, conspiring to commit wire fraud, and violations of the Lobbying Disclosure Act relating to the 2018 initial coin offering (ICO) for AML BitCoin.
In July 14, Abramoff pleaded guilty by telephone, to having defrauded investors via the ICO. This is the first time a lobbyist is being prosecuted in violation of the Lobbying Disclosure Act.
Andrade, on the other hand, is fighting criminal charges related to the ICO and has entered a plea of not guilty on July 8.
Andrade supposedly hired Abramoff to develop a marketing campaign for AML bitcoin, through which he has admitted to having distributed misleading information regarding the technical capabilities of the token and its development.
The scam was promoted on social media platforms as an enhanced version of Bitcoin and claimed to have anti-money laundering, anti-terrorism, and theft-resistant properties built into the code of the coin, stating that it will be compliant with a host of laws.
On this matter, the SEC noted that none of these features actually existed.
The NAC foundation started issuing tokens in July 2017, to purportedly raise funds for the development of AML BitCoin, promising investors that these tokens would be exchangeable for AML BitCoins when the coin would launch within six months.
Andrade, however, has a story of his own. Last month, he told media outlet Coindesk, that charges against him were false, adding that he is a “victim of government corruption.”
“Abramoff was working with the government and tried to get me to sell my company for $100 Million. Then they demanded that I pay Abramoff $40M dollars so he could spread the wealth. If I had no technology that is completed right now and trading, then why were they trying to force me to sell it? This is just an attempt by the government to destroy my company since I refused to play ball.”