Michael Ackerman, Cryptocurrency Fraud, New York 2023

Leader of Fake Cryptocurrency Investment Scheme Charged with Fraud and Money Laundering

Michael Ackerman, a 50-year-old resident of Sheffield Lake, Ohio, has been charged with wire fraud and money laundering in connection with a fake cryptocurrency investment scheme that allegedly defrauded over 100 individuals of more than $35 million.

According to the indictment, Ackerman and others started a purported cryptocurrency “investment” fund in 2017 and recruited hundreds of individual investors into the fund. Investors were told that they would receive 50% of their trading profits, and that the founders of the fund, including Ackerman, would receive the other 50%. However, Ackerman falsely represented to potential investors that the fund had historical returns of approximately 15% each month.

As part of the scheme, Ackerman prepared materials falsely purporting to show that the fund was returning approximately 15% each month, and shared that information with fund investors. For example, in or about December 2019, Ackerman represented to investors and others that the fund had a balance of over $315 million worth of cryptocurrencies available for trading in a fund account. However, the actual trading balance was less than half a million dollars.

“Allegedly touting monthly returns of over 15%, Michael Ackerman was able to raise over $35 million in investments for his fake cryptocurrency scheme,” said U.S. Attorney Geoffrey S. Berman. “He allegedly falsified documents representing to investors that his fund had a balance of over $315 million worth of cryptocurrencies, when in actuality, he had less than half a million dollars. Today’s arrest should remind would-be investors to take extreme caution and thoroughly vet investment opportunities, especially when promised abnormally high rates of return.”

Ackerman, who will be presented in federal court in the Northern District of Ohio on Friday, faces one count of wire fraud and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the court based on the applicable federal sentencing guidelines and other factors.

The case is being investigated by the Federal Bureau of Investigation and Homeland Security Investigations. The public is reminded to be cautious of investment opportunities that promise unusually high returns and to thoroughly research any investment before committing to it.

Source: https://www.justice.gov/usao-sdny/pr/leader-fake-cryptocurrency-investment-scheme-charged-fraud-and-money-laundering