Federal Jury Convicts Cryptocurrency Entrepreneur

A federal jury in the Northern District of California convicted cryptocurrency entrepreneur Rowland Marcus Andrade of wire fraud and money laundering related to the sale of AML Bitcoin tokens.

The charges emerged from an initial coin offering Andrade conducted for AML Bitcoin in 2017 and 2018. Court filings indicated that Andrade, a Texas resident, misled investors, claiming that AML Bitcoin tokens would be convertible into genuine AML Bitcoin tokens, a cryptocurrency that was never launched and mimicked the popular Bitcoin token.

This conviction concludes one of the first and longest-lasting crypto “pump-and-dump” cases prosecuted by U.S. federal authorities.

The Department of Justice identified noted D.C. lobbyist Jack Abramoff as a co-conspirator; he pleaded guilty in 2020 and repaid over $50,000 in disgorgement and interest. Abramoff is infamously known for his role in a federal corruption scandal leading to his imprisonment and was portrayed in the film Casino Jack.

The U.S. Department of Justice’s statement accused Andrade of misappropriating over $2 million from the sale of AML Bitcoin for personal expenses, including acquiring two Texas properties and two luxury cars. Andrade also falsely claimed that the Panama Canal Authority was nearing approval for AML Bitcoin’s use for ships transiting through the Canal, which was not true.

Acting United States Attorney Patrick D. Robbins stated, “Fraudsters often tout new and innovative technology to raise money from investors. But raising money through lies and misrepresentations is neither new nor innovative. It’s unlawful, plain and simple.” He added, “If you deceive investors to enrich yourself and spend their money on personal expenses, homes, and property, you will be held to account.”

Andrade’s sentencing is scheduled for July, where he faces a maximum penalty of 20 years for wire fraud and 10 years for money laundering, along with forfeiture of property linked to his crimes, including assets acquired in Texas.