According to the US Department of Justice, Michael Ackerman the individual behind a multi-million dollar cryptocurrency scam pleaded guilty to fraud this week and may face up to 20 years in jail if convicted.
Following his guilty plea for scamming investors in a crypto scheme he orchestrated in 2017, Ohio man Michael Ackerman could face up to 20 years in prison.
Hundreds of investors were sucked in by the too good to be true hoax, which promised 15 percent monthly returns if they put money into a crypto fund called the Q3 Trading Club.
Audrey Strauss, the United States Attorney for the Southern District of New York, announced Ackerman’s guilty plea on Sept. 8, saying he admitted to defrauding victims of more than $30 million.
“As he admitted today, Michael Ackerman raised millions of dollars in investments for his fake cryptocurrency scheme by falsely touting monthly returns of over 15 percent.”
Strauss also admitted to falsifying documents to deceive investors into believing his fund had a $315 million balance. According to the Department of Justice, the fund never had a balance of more than $5 million.
Ackerman used $9 million in investor funds to “fund a luxury lifestyle” that included real estate, jewelry, vehicles, travel, and personal security services, according to the complaint.
The 52-year-old pleaded guilty to wire fraud charges and agreed to pay at least $30 million in restitution, as well as forfeit $36 million in cash, real estate, and jewelry he fraudulently acquired. On January 5, 2022, Ackerman will be sentenced.
In February 2020, the Securities and Exchange Commission charged him with breaking securities laws. It was stated at the time that he used a private Facebook group called “Physicians Dads” to target doctors in particular.
Ackerman, a former New York Stock Exchange institutional broker, worked with James Seijas, a former Wells Fargo financial advisor, and surgeon Quan Tran as part of a trio.
In April 2020, victims of the scheme sued Wells Fargo for neglecting to investigate an employee’s actions.
