Michael Yusko, III, Defrauding Customers Through Bitcoin Sales, Louisiana 2021

New Orleans Man Admits to Defrauding Customers Through Bitcoin Sales

A 46-year-old New Orleans resident has pleaded guilty to operating an unlicensed money transmitting business.

According to court documents, Michael Yusko, III, sold customers bitcoin and other cryptocurrencies but failed to follow through on transactions.

Yusko promised customers any amount of bitcoin in exchange for U.S. dollars at five percent above market price for a five percent fee.

He directed customers to deposit U.S. dollars into one of several business bank accounts, including Nervous Light Capital LLC, Ready Demolition LLC, Patriot Concrete Pumping, LLC, Praetorian Energy, LLC, and Hudson Oak Partners LLC.

Yusko did not register these companies as money transmitting businesses with Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury, and he otherwise did not comply with the regulations of Title 31, United States Code, Section 5330.

The court documents detail how customers communicated with Yusko and paid him tens of thousands of dollars for bitcoin.

While Yusko did carry out transactions with many customers, he failed to fulfill other transactions, and then he failed to return the U.S. dollars deposited in his accounts.

Yusko admitted to being responsible for $201,399.00 in losses to victims.

As part of his plea, Yusko agreed to make full restitution.

Yusko faces a maximum of five years in prison, a maximum $250,000.00 fine, up to three years of supervised release, and a $100 mandatory special assessment.

Judge Barry W. Ashe scheduled Yusko’s sentencing for November 4, 2021.

U.S. Attorney Duane A. Evans praised the 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 in charge of the prosecution.

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