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Michael Ackerman risks 20 years jail term after massive scam

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TL;DR Breakdown

  • 52-year-old crypto scammer defrauds investors of over $30m.
  • Michael Ackerman, the scammer pleads guilty, ready to forfit properties to reduce his jail term.

Michael Ackerman, who has pleaded guilty to an alleged $30 million crypto investment scam in the US, is set to be sentenced to over 20 years in jail.

According to a press release from the US Department of Justice (DOJ), Michael Ackerman, who is based in Ohio, began defrauding people in 2017.

He lied to victims that they could invest funds that would be traded for cryptocurrency, claiming that the fund uses an algorithm that would profit the investors 15 percent every month.

Michael Ackerman falsified documents with investors claiming that the crypto fund has continued to grow to $315 million when in truth, the funds were less than $5 million.

However, the US attorney for the Southern District of New York, Audrey Strauss, revealed that the suspect pleaded guilty on September 8, stating that Ackerman admitted to causing losses of more than $30 million from victims.

The judge revealed that Michael Ackerman stole $9 million from investor contributions to “bankroll a lavish lifestyle,” including real estate, jewelry, vehicles, travel, and personal security services.

Michael Ackerman, ready to forfeit proceeds to get shorter sentence

In order to reduce his prison sentence, Michael told the judge he was guilty of wire fraud and agreed to refund at least $30 million while forfeiting $36 million in cash, real estate, and jewelry that he had fraudulently acquired.

His sentencing has been scheduled for January 5, 2022.

Before his arraignment before the US Department of Justice, 52-year-old Michael Ackerman was charged by the Securities and Exchange Commission in February 2020 for violating securities laws. ‘

Then, he reportedly targeted physicians, particularly via a private “Physicians Dads Group” on Facebook.

He belonged to a trio syndicate alongside James Seijas, a former financial advisor for Wells Fargo, and surgeon Quan Tran. They put Well Fargo in trouble back then as victims sued the bank for failing to investigate the activities of its employees.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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