Buffalo, NY – In a shocking turn of events, a federal grand jury has indicted 30-year-old Richard Petix of Rochester, NY for operating an unlicensed money transmitting business and making material false statements. This case marks the district’s first Bitcoin-related case.
According to the indictment, Petix lied to federal probation officers and law enforcement agents about his ownership and use of a laptop computer and a smartphone. The defendant is on supervised release for a 2009 federal child pornography conviction and must notify probation of any computers he uses. On October 20, 2015, Petix told his probation officer that he did not use any computers or the Internet. However, on December 3, 2015, Petix conducted a bitcoin sale with an undercover federal agent, transferring 37 bitcoins worth approximately $13,000 to the agent.
Petix is accused of unlawfully operating a bitcoin-exchange business that sold approximately $200,000 in bitcoins between August 2014 and December 3, 2015. The defendant faces five years in prison on each of his charges.
“This case demonstrates the ever-growing ways in which the virtual world is intersecting with, and being exploited by, real life crime and criminals,” said U.S. Attorney William J. Hochul Jr. “Those involved in such illicit activities should know that law enforcement is prepared to track them into the deep and dark portions of the web in order to bring criminals to justice.”
Petix’s indictment comes as a warning to those who think they can hide in the virtual world. The U.S. Attorney’s office is committed to tracking down and prosecuting those who exploit this technology for their own gain.
In a related case, Zhe Wang, 20, and Kevin Szura, 20, both of Queens, NY, were charged with conspiracy to distribute controlled substances, money laundering conspiracy, money laundering, and conducting a monetary transaction in criminally derived property. Wang and Szura face up to 20 years in prison.
Defendant: Richard Petix
Criminal Charges: Operating an unlicensed money transmitting business and making material false statements
City and State: Buffalo, NY
Exact Date: August 2014 – December 3, 2015
Sentence or Outcome: 5 years in prison on each charge
Dollar Amounts: $13,000 and $200,000
Related Federal Cases
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- Christopher Ferguson, Scheme to Inflate Order Numbers, New York 2023 · Washington
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
Key Facts
- State: New York
- Category: Cybercrime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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