David Scotese, Unlicensed Money Transmitter, New York 2024

In a shocking turn of events, David Scotese pleaded guilty to operating an unlicensed money transmitting business in federal court in Central Islip, New York. Scotese, who worked as a cryptocurrency exchanger and transmitter, admitted to moving money for his clients without following the necessary regulations.

According to the guilty plea, Scotese operated his business without registering with the Financial Crimes Enforcement Network (FinCEN) or obtaining a state license. This allowed him to buy and sell cryptocurrency with no regard for the legitimacy of the initial funds, setting a dangerous precedent in the emerging market.

Scotese’s actions were deemed a threat to the security of the financial system, which is intended to prevent corruption by drug traffickers and other criminals. United States Attorney Breon Peace stated that Scotese’s guilty plea should serve as a warning to other unlicensed money transmitting businesses that FinCEN registration and regulatory compliance are not mere technicalities, but a necessary part of efforts against crime.

The prosecution was led by the Internal Revenue Service-Criminal Investigation (IRS-CI), with assistance from the Homeland Security Investigations (HSI) New York, the New York City Police Department (NYPD), and the United States Postal Inspection Service (USPIS). The agencies worked together to bring Scotese to justice, with HSI New York’s El Dorado Task Force Darkweb and Cryptocurrency investigators playing a key role in the investigation.

As part of his plea agreement, Scotese agreed to forfeit cryptocurrency, cash, and precious metals worth in excess of $1.3 million at current valuation. When sentenced, Scotese faces up to five years in prison. The case serves as a reminder that individuals who facilitate the illegal transfer of money will be held accountable, and the security of the banking system depends on it.

The guilty plea is a significant victory for law enforcement, who have been working to combat the growing threat of unlicensed money transmitting businesses. Scotese’s actions demonstrate the need for regulatory compliance in the cryptocurrency market, and the consequences of flouting these rules.

The case is a warning to others who may be tempted to engage in similar activities. The agencies involved in the investigation will continue to work together to identify and stop these criminals, and to ensure that the public remains protected from those who attempt to skirt the rules.

Related Federal Cases