In a recent development, Mark Scott, a former partner at the U.S. law firm Locke Lord, has been sentenced to 10 years in prison for his role in a fraudulent cryptocurrency scheme. The scheme, known as the OneCoin cryptocurrency fraud, involved the laundering of $400 million. The Manhattan federal prosecutors successfully convicted Scott of conspiracy to commit money laundering and conspiracy to commit bank fraud in November 2019, leading to his sentencing on Thursday.
During the sentencing, U.S. District Judge Edgardo Ramos ordered Scott not only to serve a prison term but also to forfeit a significant amount of wealth. Scott was ordered to forfeit a staggering $392,940,000, along with various assets such as bank accounts, a yacht, two Porsche automobiles, and four real estate properties. These penalties were imposed to hold Scott accountable for his involvement in the fraudulent activities and to seize his illegal proceeds.
Manhattan U.S. Attorney Damian Williams emphasized the extent of Scott’s deception and financial success through fraudulent means. Williams stated that Scott managed to accumulate $50 million by the age of 50, but his accomplishment came at the expense of others. Scott’s actions were characterized by fraud and deception, which ultimately led to his downfall, a decade-long prison sentence, and complete forfeiture of his ill-gotten gains.
Prosecutors revealed that Scott’s involvement in the OneCoin scheme began in 2015 when he was introduced to Ruja Ignatova, famously known as the “Cryptoqueen” and the co-founder of OneCoin. Scott played a crucial role in establishing fake investment funds in 2016, which facilitated the laundering of millions of dollars in fraud proceeds. For his participation in the scheme, Scott received over $50 million, which he used to acquire luxury assets including cars, a yacht, and multiple seaside homes.
In a bid to mitigate his sentence, Scott’s defense team sought a five-year prison term, presenting him as a “broken man” who had already spent four years in home confinement. However, the prosecutors were adamant in pushing for a minimum sentence of 17 years. They focused on Scott’s immense greed and dissatisfaction with his already privileged lifestyle as a partner in a prestigious law firm.
In a separate legal proceeding, Scott was disbarred in November 2020 by a New York state appellate court, further complicating his legal situation. Meanwhile, Karl Sebastian Greenwood, another co-founder of the OneCoin scheme, received a 20-year prison sentence and was ordered to forfeit $300 million in September. The third co-founder, Ruja Ignatova, remains at large and has become one of the FBI’s top 10 most wanted individuals in 2022.
Mark Scott’s involvement in the OneCoin cryptocurrency fraud scheme has proven costly as he was sentenced to 10 years in prison and ordered to forfeit immense assets and wealth. This case serves as a reminder of the importance of upholding ethical practices, especially in the rapidly evolving world of cryptocurrency. The prosecution’s success in bringing Scott to justice demonstrates their determination to combat fraudulent activities and protect the integrity of the financial industry.
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