We continue to publish excerpts from the indictment filed by the prosecution against the individuals responsible in this case. The indictment clearly reveals the criminal intent of the organizers from the very beginning of the project. Everything was aimed at elicit money from the victims.
Quoting parts of the indictment:
Manner and Means of the Conspiracy
4. It was part of the conspiracy that:
- GOEYFSCHE, MEDLIN, WEEKS, and others promoted and caused to be promoted investments in BCN shares as a pooled investment of bitcoin mining proceeds.
- GOETI’SCHE. BALACI, and others discussed and understood that BCN’s purported cryptocurrency mining would not be profitable, but would serve to induce investors to purchase BCN memberships and shares in BCN’s purported mining pools.
- The Fraud Co-Conspirators made and caused others to make materially false and fraudulent pretenses, representations, and promises to,
4 Case 2:19-cr-00877-CCC Document 1 Filed 12/05/19 Page 4 of 27 PageID: 4 and to conceal material facts from, investors regarding aspects of BCN’s investment products, including the information that was displayed to BCN’s investors as proof of “bitcoin mining earnings” that purportedly were generated through BCN’s bitcoin mining pool.
- GOEYTSCHE, BALACI, and MEDLIN manipulated the numbers that were displayed to BCN investors as “mining earnings” to promote the sale of bitcoin mining shares in BCN and to convince BCN members to invest additional funds in other BCN cryptocurrency-related products.
- Based on the materially false arid fraudulent pretenses, representations, promises, and omissions that the Fraud Co-Conspirators made and caused to be made to investors, the Fraud Co-Conspirators, both individually and through BCN, received funds from investors, including through cash, check, wire transmissions, and cryptocurrency transfers.
- The Fraud Co-Conspirators, through BCN, obtained at least S722 million from investors.
- The Fraud Co-Conspirators and others discussed the fraudulent scheme over email and Internet chat, posted videos encouraging investment in BCN, and used the BCN website to promote the fraudulent scheme, including, for example, the following…
Attorney at Law