Michael Yusko III, Unlicensed Money Transmitter, Louisiana 2021

NEW ORLEANS, LA – Michael Yusko, III, 46, of New Orleans, is facing serious time after pleading guilty to running an unlicensed money transmitting business and defrauding customers through bogus bitcoin sales. The scheme, which began surfacing in May 2018, saw Yusko promising to deliver bitcoin in exchange for U.S. dollars, but routinely failing to follow through on the deals.

According to court documents, Yusko lured victims with the promise of bitcoin at a five percent premium – a five percent fee for his services. Customers wired cash into a network of shell companies Yusko controlled, including Nervous Light Capital LLC, Ready Demolition LLC, Patriot Concrete Pumping, LLC, Praetorian Energy, LLC, and Hudson Oak Partners LLC. Crucially, Yusko never bothered to register any of these businesses as legitimate money transmitters with the Financial Crimes Enforcement Network (FinCEN), and blatantly disregarded federal regulations.

The feds say Yusko wasn’t just skirting the law; he was actively encouraging his clients to lie to their banks. He allegedly instructed them *not* to disclose the purpose of the wire transfers – the purchase of cryptocurrency – knowing banks frequently freeze accounts tied to such transactions. This wasn’t a first offense for Yusko, who had previously seen accounts shut down for similar activity.

Victims reported sending tens of thousands of dollars to Yusko, and while some transactions went through, many did not. Even worse, Yusko refused to refund the money for unfulfilled orders, pocketing the cash. He’s now admitted responsibility for $201,399.00 in losses and has agreed to make full restitution, though that won’t undo the damage already done.

U.S. Attorney Duane A. Evans announced the guilty plea, praising the collaborative work of the Federal Bureau of Investigation New Orleans Field Office and the U.S. Secret Service New Orleans Field Office. Assistant United States Attorney Matthew R. Payne is leading the prosecution. Yusko faces a maximum sentence of five years in prison, a $250,000.00 fine, up to three years of supervised release, and a $100 mandatory special assessment.

Judge Barry W. Ashe has scheduled Yusko’s sentencing for November 4, 2021. This case serves as a stark reminder that even in the rapidly evolving world of cryptocurrency, the old rules still apply: fraud is a crime, and those who profit from deception will be held accountable. The Grimy Times will continue to follow this case and report on the sentencing.

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