Bitclub Newsletter No. 115

by | Oct 4, 2024 | Bitclub | 0 comments

Dear Clients,

Jobadiah “Joby” Weeks has pleaded guilty to two counts of fraud in connection with BitClub Network.

In accordance with the plea agreement reached with the U.S. Department of Justice, Weeks has pleaded guilty to conspiracy to offer and sell unregistered securities, as well as tax evasion.

According to the plea agreement, Weeks acknowledges that he willfully evaded tax obligations for taxable periods from 2015 to 2018. The parties agree that the total amount of tax loss is greater than $3,500,000 but less than $9,500,000.

The two counts of fraud to which Weeks has pleaded guilty carry statutory penalties of up to five years in prison each, to be served consecutively. He will also be subject to a statutory monetary penalty.

The plea agreement requires Weeks to pay restitution to the victims of BitClub Network.

If he fulfills the terms of the agreement, the Department of Justice will not pursue further proceedings related to BitClub Network or tax evasion, including the dismissal of the charge of fraud by electronic communication from Weeks’ indictment.

The agreement was accepted in court on November 5, and the next day, bail was set at two million dollars. To secure his release, Weeks and his family members offered four properties in the U.S. as collateral.

After the conclusion of the agreement, it is necessary for the court to issue a judgment for the agreement to be validated. For the victims of this fraud, the most important part of the agreement is Weeks’ obligation to pay restitution.

Sentencing has been postponed multiple times, with the latest postponement scheduled for November 2024, without explanation.

Currently, three fraudsters from BitClub Network have pleaded guilty: programmer Silviu Catalin in July and promoter Joe Abel in September.

The Department of Justice’s case against leaders Matthew Brent Goettsche and Russ Medlin is ongoing. Although slower than expected, this complex case is progressing toward its conclusion. To reiterate, sentencing for Weeks has been postponed to November 20.

Attorney,
Zoran Miljaković