A Defrauding Of Over $36 Million!
Renwick Haddow, a 49-year old alleged bitcoin scammer from the UK has been deported to the US from Morocco. The announcement is made by FBI that he is being extradited to the US in order to face the charges at the Southern District Court of New York. The man is accused of doing a fraud of more than $ 36 million. He defrauded this amount from the victims as he used to make material misrepresentations. He also misappropriated investment funds in two companies namely Bitcoin Store and Bar Works.
In July 2017, after the filing of Haddow being accused, he was arrested in Morroco. The SEC filed the fraud charges against him. As per the complaint filed by SEC, Haddow allegedly used the sales representatives in order to conduct this crime. He used to cold call the potential investors and then sold them the securities in both the companies. He had a control over Bitcoin Store and Bar works as he hid his involvement due to his shady past.
The SEC reportedly presented the promotional material which Haddow used to present in front of the investors. The material reflected the misrepresented key facts about the whole operation. Haddow reportedly diverted a fund of more than 80 percent which was raised in Bitcoin Store. He also delivered over $4 million to Mauritius and $1 million to Morroco from the bank accounts of Bar Works.
Forty Years Of Imprisonment!
Haddow is ultimately accused of defrauding two trendy companies and misleading the investors of those companies. He inculcated a belief that the investors are being led by highly qualified executives who are ruling them to make quick profits. But on the contrary of it, Haddow was controlling both the companies from behind the scenes and they were miles away from profitability.
Andrew M. Calamari, Director of the SEC’s New York Regional Office explained:
Renwick Haddow has been charged with two counts of fire fraud. And each of them carries a maximum sentence of twenty years imprisonment making it forty years overall.