The 94% Con by Jon Montroll

[Whtwabbit]

I just tried to log in to IRC #Bitcoin-aus where he used to hang but I have been "banned from server" wtf

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[kaw2019]

Finally the gears are grinding Ukyo...

[SebastianJu]

I just tried to log in to IRC #Bitcoin-aus where he used to hang but I have been "banned from server" wtf

Some guys are in the channel but I don't see activity yet. I'm not sure if I remember his username correctly there. I wouldn't await to see him there now.

Anyway... this will help us nothing in getting our coins back. They only charge him for having lied instead going after the killers. So the outcome will be that he gets a fine or even jail but no one will go after our coins.

Please let me know if I'm wrong. I really would like to see those bastards caught. Judging from ukyo's description back then they were some kind of gangsters anyway. However not sure if he even could confirm anything.

[Pompobit]

Now that he is caught is there going to be any kind of claims process?

unfortunately I doubt it. As far as I know it never happened that the SEC refunded anyone in the crypto world

[SebastianJu]

Does anyone have still contact to Jon (ukyo)? Please let me know. Don't really know how his situation is after the trial but can't get in contact anymore at the moment.

[jbreher]

Jon E. Montroll, a 37 year old from Texas, is now facing up to 30 years in jail for perjury and obstruction of justice.
https://steemit.com/bitcoin/@dasusu/see-photos-of-bitcoin-exchange-operator-who-lied-about-6000-bitcoin-hack-arrested-by-the-fbi

Good. Is there a mechanism for claiming our stolen BTC and our stolen XRP?

Jon E. Montroll has his sentencing adjourned to December 11, 2018, as he claims to need more time to resolve civil matters.

https://financefeeds.com/bitfunder-operator-jon-montroll-sentencing-adjourned/

I note the adjournment is now in the past. Any report on the sentencing?

[discobean]

I note the adjournment is now in the past. Any report on the sentencing?

https://financefeeds.com/bitfunder-operator-jon-montroll-seeks-sentencing-postponed/

As per a Letter submitted at the New York Southern District Court on Saturday, November 17th, Montroll requests that the Court adjourn sentencing to January 24, 2019.

The reason for the requested adjournment is to give Montroll additional time to generate funds that are set to allow him to make a substantial payment towards his agreed-upon restitution obligation prior to sentencing. The defense counsel explains that Montroll owns and operates two nursing homes in north Texas and expects to receive in December and January reimbursement for services rendered that will allow him to satisfy part of his restitution in advance of sentencing.

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2 nursing homes....

[SebastianJu]

I note the adjournment is now in the past. Any report on the sentencing?

https://financefeeds.com/bitfunder-operator-jon-montroll-seeks-sentencing-postponed/

As per a Letter submitted at the New York Southern District Court on Saturday, November 17th, Montroll requests that the Court adjourn sentencing to January 24, 2019.

The reason for the requested adjournment is to give Montroll additional time to generate funds that are set to allow him to make a substantial payment towards his agreed-upon restitution obligation prior to sentencing. The defense counsel explains that Montroll owns and operates two nursing homes in north Texas and expects to receive in December and January reimbursement for services rendered that will allow him to satisfy part of his restitution in advance of sentencing.

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2 nursing homes....

Not sure what the nursing homes have to do with it. Surely they can't bring enough funds to pay back the funds, right? But 30 years? WTF. And that is for "for perjury and obstruction of justice". Does someone know what exactly he said or did that renders to him actually having to live half of his life in jail?

[VayaconDios]

I agree that the probability the two nursing home businesses would yield enough funds to recompensate investors is nil to slim.

Both are registered at his mother's home [ 8101 CHAPIN RD., BENBROOK, TX  76116-6905 ]

Vista Living Of Vernon, Inc. in Benbrook
4301 Hospital Dr, Vernon, TX 76384, USA

Vista Living Of Archer, Inc. in Benbrook
201 E Chestnut St, Archer City, TX 76351, USA


Perhaps because Montroll and/or his attorney believe that the Court & Judge is a fool, they have postponed sentencing with what I believe are false, if not purposely exxagerated claims on how these nursing home businesses might yield enough cash to compensate victims. If the Court discovers how unlikely this would have been, then unless the Judge is soft and stupid, Montroll is going to get hit hard during sentencing.

In the latest stunt, we have one of his kids writing a crappily-written letter to the Judge pleading leniency. And, gamesmanship from his lawyer cockily proposing some minimal pithy house detention....

“My dad likes to do magic for us” – kid writes to Court about his father accused of Bitcoin fraud
https://financefeeds.com/dad-likes-magic-us-kid-writes-court-father-accused-bitcoin-fraud/

“My dad likes to do magic for us and other kids. This is the closest way I imagine my dad to lie” – says the son of Jon Montroll, accused of Bitcoin fraud.

All stories, including stories about fraud, have at least two sides. The FinanceFeeds team has been keeping an eye on cryptocurrency fraud cases and has been trying to provide as much detail as possible on some of the major enforcement actions in this respect. Nevertheless, FinanceFeeds’ managing editor has to admit that now and then, it is worth reminding ourselves that all those fraudsters and scammers are human beings too. This has been shown by the sentencing submission filed earlier this week by Jon Montroll, accused of Bitcoin fraud.

The defendant pleaded guilty to securities fraud and obstruction of justice in July this year. As the Court will soon decide on his penalty (he faces a substantial prison term), the defense seeks that the Court sentence Montroll to a period of probation together with conditions of home detention and community service to be determined by the Court.

The sentencing submission includes details about the legal grounds for the defense pushing for such a penalty. The document also includes dozens of letters from Montroll’s friends and community members speaking in his favor.

Montroll is a father to four children, ages to 8 through 12. Although Montroll did not ask for his children to write any letters, one of his sons did so. Below is an excerpt of this letter (the rest contains personal information which FinanceFeeds’ managing editor believes does not need to be disclosed).

https://i.imgur.com/pOGPQzM.png
https://i.imgur.com/ceKiE9N.png

“Dear Judge,

I heard my dad asking friends for letters that describe him. I wanted to write a letter too.

Dad told me he made the biggest mistake of his life years ago and now he has to be punished for it and said that we should learn from his mistakes and to not make them and to sure to always be honest. My dad likes to do magic for us and other kids. This is the closest way I imagine my dad to lie. He always shows us how tricks work so I am not sure that counts.

Dad is a kind forgiving father is always very cheerful and fun to be around. He plays games with us. He has taught valuable life lessons like don’t do drugs and don’t smoke. He shows us old and new moves and we always have the best Birthday and Christmas is incredible when things are sad…”

Back to adult reality, let’s note that the counts to which Montroll pleaded guilty and for which he has accepted responsibility are both Class C felonies. The rules provide for maximum term of imprisonment of 20 years. However, the defense notes that a probationary sentence of between one and five years is available.

If anyone reading this, who was affected by Montroll / Ukyo, and doesn't believe that the most he ought to get is some form of probationary house detention, they should consider putting pen to paper and writing to the same Judge:

http://nysd.uscourts.gov/judge/Berman

Hon. Richard M. Berman
United States District Judge
Daniel Patrick Moynihan
United States Courthouse
500 Pearl St.
New York, NY 10007-1312

Courtroom: 17B
Chambers Phone: (212) 805-6715
Deputy Phone: (212) 805-6715

[VayaconDios]

Not sure what the nursing homes have to do with it. Surely they can't bring enough funds to pay back the funds, right? But 30 years? WTF. And that is for "for perjury and obstruction of justice". Does someone know what exactly he said or did that renders to him actually having to live half of his life in jail?

Take a look at  U.S. v. Shavers, U.S. District Court, Southern District of New York, No. 15-cr-00157


JULY 22, 2016
Texan gets one-and-a-half years in prison for running bitcoin Ponzi scheme
https://www.reuters.com/article/us-bitcoin-fraud-texas/texan-gets-one-and-a-half-years-in-prison-for-running-bitcoin-ponzi-scheme-idUSKCN1012W8

Trendon Shavers - who lived nearby Montroll -  received 1.5 years in prison ...

Montroll in his stupidity & arrogance, felt he had "one upped" the federal investigators who questioned him on more than one occasion. He even had the temerity to refer to one as a "stupid bitch" to acquaintances bragging he had outsmarted them. None of that scores points with the prosecution with initial charges of perjury extending to obstruction of justice. Same goes with any insincere attempts by him and his attorney to stall sentencing with false claims that somehow two months of accounts receivable from two extremely minor nursing home operations might somehow cover the losses suffered by his victims.

[jbreher]

Thanks for the info. Crib if you care to:


Hon. Richard M. Berman

United States District Judge

Daniel Patrick Moynihan

United States Courthouse

500 Pearl St.
New York, NY 10007-1312

Dear Judge Berman:

I understand that you will soon be conducting sentencing in the case of SEC vs Jon E Montroll. I write you as one who has been wronged by this convict.

Fraudster Montroll, as near as I understand, created an overseas ‘crypto exchange’, known at least informally as ‘weexchange.co’. Believing this to be a legitimate business run by honest principals, I deposited a number of Bitcoin (BTC or XBT) and a number of Ripple (XRP) with this ‘exchange’.

The business seemed to operate in a legitimate manner for some time. However, as is now apparent, the business seems to have been merely a front for a fraudulent partial reserve scheme to steal depositors’ funds. Ultimately, all my funds deposited with this organization were absconded with.

The manner in which my funds were stolen is not clear to me. As the business’ nefarious activities started to become apparent, all meaningful communication with it came to a close, and inquiries went unanswered. I imagine the court has probably uncovered a mountain of evidence as to the nature of the swindle.

To add insult to injury, Mr Montroll has made no effort to make restitution to his victims. He has continued to act in an opaque and cavalier manner, being non-responsive to any inquiries from the wronged parties. He has refused even to acknowledge the amounts stolen from the victims. This displays a contempt of those upon whom he preyed.

The bottom line that I wish to convey here is that I – as many others – were grievously harmed in the illegitimate actions of this Jon Montroll character.

I understand Mr Montroll has been engaging delaying tactics on his sentencing. He is evidently attempting to use this time to ‘stuff the ballot box’ with glowing third-party descriptions of his character.

Frankly, what Mr Montroll’s friends, family, acquaintances, and paid shills think of him is irrelevant in this matter of justice. Mr Montroll defrauded many innocent people out of vast sums of money.

Mr Montroll should be sentenced in line with any other common grifter who preys upon innocent bystanders. Period.

I understand that each count calls for a maximum imprisonment of 20 years. I understand also that a lenient apologist court might sentence him to as little as one year of probation. While I cannot pretend to know the standards by which the court might sentence such a miscreant, given the nature of the fraud, the sheer amount of unjust enrichment, and the cavalier treatment of those left broken in the wake of his misdeeds, meaningful prison time is certainly warranted.

Thank you for your consideration of this – one of many – victim of the convicted.

[SebastianJu]

I would prefer him having to work on restitution with a payback plan. This time being open about everything. I'm definitely not pleased knowing he will be in jail until he is an old man, that gives me nothing. I would be happy if I would get my coins back. But this ... 30 years ... totally useless for everyone.

I still want to know which restitution is meant and in which direction this will go. I guess it's targeted to ukyo.loan. At least it sounds like this in another news article posted by digit:

NY Court postpones sentencing of BitFunder operator Jon Montroll (November 20, 2018) - https://financefeeds.com/ny-court-postpones-sentencing-bitfunder-operator-jon-montroll/

Judge Richard M. Berman of the New York Southern District Court has adjourned the sentencing to January 24, 2019.


Jon Montroll, operator of purported Bitcoin platform BitFunder, has obtained the Court’s approval of his request to have his sentencing postponed again.

The latest document filings with the New York Southern District Court show Judge Richard M. Berman has granted the defendant’s request. This means that sentencing is adjourned to January 24, 2019.

Montroll has asked for additional time to generate funds that are set to allow him to make a substantial payment towards his agreed-upon restitution obligation prior to sentencing. The defense counsel has explained that Montroll owns and operates two nursing homes in north Texas and expects to receive in December and January reimbursement for services rendered that will allow him to satisfy part of his restitution in advance of sentencing.

Montroll, a/k/a “Ukyo,” operated two online bitcoin services: WeExchange Australia, Pty. Ltd. (WeExchange) and BitFunder.com (BitFunder). WeExchange functioned as a bitcoin depository and currency exchange service. BitFunder facilitated the purchase and trading of virtual shares of business entities that listed their virtual shares on the BitFunder platform.

Between the launch of Bitfunder, in or about December 2012, and at least in or about July 2013, Montroll converted a portion of WeExchange users’ bitcoins to his personal use without the users’ knowledge or consent. He exchanged bitcoins taken from WeExchange into US dollars, then spent those funds on personal expenses, such as travel.

In addition, since July 18, 2013, Montroll has promoted a security referred to as “Ukyo.Loan.” He encouraged investors to “think of [Ukyo.Loan] as a sort of round-about investment” in BitFunder and WeExchange and, at the same time, described Ukyo.Loan as “a personal loan” and “for private investment purposes.”

During the summer of 2013, one or more individuals (the so-called “Hackers”) exploited a weakness in the BitFunder programming code to cause BitFunder to credit the Hackers with profits they did not, in fact, earn. As a result, the Hackers were able to wrongfully withdraw from WeExchange approximately 6,000 bitcoins, with the majority of those coins being wrongfully withdrawn between July 28, 2013, and July 31, 2013. Due to this “exploit”, BitFunder and WeExchange lacked the bitcoins necessary to cover what Montroll owed to users.

Montroll did not disclose what happened to users of BitFunder and WeExchange, or investors in Ukyo.Loan. Instead, he continued to promote and sell Ukyo.Loan to customers and, on at least one occasion, falsely represented to customers that BitFunder was commercially successful. As a result of his omissions and misrepresentations, the defendant raised approximately 978 bitcoins through Ukyo.Loan after his discovery of the Hackers’ actions.

In July this year, Montroll pleaded guilty to securities fraud and obstruction of justice.

The case is captioned USA v. Montroll (1:18-cr-00520).

[jbreher]

I would prefer him having to work on restitution with a payback plan.

I reiterate:

To add insult to injury, Mr Montroll has made no effort to make restitution to his victims. He has continued to act in an opaque and cavalier manner, being non-responsive to any inquiries from the wronged parties. He has refused even to acknowledge the amounts stolen from the victims. This displays a contempt of those upon whom he preyed.

[SebastianJu]

I would prefer him having to work on restitution with a payback plan.

I reiterate:

To add insult to injury, Mr Montroll has made no effort to make restitution to his victims. He has continued to act in an opaque and cavalier manner, being non-responsive to any inquiries from the wronged parties. He has refused even to acknowledge the amounts stolen from the victims. This displays a contempt of those upon whom he preyed.

He definitely made a lot of wrong decisions. Biggest one in my eyes was handling the incident the way he did. Which included the silence. Biggest one for him would be the formal stupid moves that mean 30 years in jail. Would he have come clear, probably nothing would have happened at all besides running an unregistered exchanges or somewhat.

Regardless of that, the letter makes not much sense in a constructive way. To your knowledge he didn't try to handle things, ok, but you saying he shouldn't be able to try something now, for just some days, does sound like revenge only.

If he's gone everything will be gone ultimately, most probably. While even this Shavers only received less than 2 years. Somewhat crazy.

But I can understand your feelings, however, I learned emotions are never a good indicator for actions in crypto.

[jbreher]

I would prefer him having to work on restitution with a payback plan.

I reiterate:

To add insult to injury, Mr Montroll has made no effort to make restitution to his victims. He has continued to act in an opaque and cavalier manner, being non-responsive to any inquiries from the wronged parties. He has refused even to acknowledge the amounts stolen from the victims. This displays a contempt of those upon whom he preyed.

He definitely made a lot of wrong decisions. Biggest one in my eyes was handling the incident the way he did. Which included the silence. Biggest one for him would be the formal stupid moves that mean 30 years in jail. Would he have come clear, probably nothing would have happened at all besides running an unregistered exchanges or somewhat.

Regardless of that, the letter makes not much sense in a constructive way. To your knowledge he didn't try to handle things, ok, but you saying he shouldn't be able to try something now, for just some days, does sound like revenge only.

If he's gone everything will be gone ultimately, most probably. While even this Shavers only received less than 2 years. Somewhat crazy.

But I can understand your feelings, however, I learned emotions are never a good indicator for actions in crypto.

Montroll did not 'make wrong decisions'. He defrauded those who put trust in him. Then stonewalled any and all inquiry in an attempt to cover his tracks.

Even if he were to remain a free man -- even if he were to accept responsibility for his actions (he won't) and direct all his labors (really?) until death toward restitution (as if) -- you'll never get more than a penny on the dollar from him. He is utterly incapable of such. Your willingness to turn the other (ass) cheek (as he bends you over one more time) is a fool's forebearance.

At some point you need to accept that you've been royally screwed, have no hope of recouping your losses even with the hand of the state enforcing it, and move on to making him pay for his misdeeds. If not as punishment, at least as a signal to others who might be contemplating a similar life of crime.

edit:

As stated above: Mr Montroll should be sentenced in line with any other common grifter who preys upon innocent bystanders. Period.

Yes, Shavers got off lightly. I see no benefit in perpetuating such a miscarriage of justice.

Incidentally, I'm pretty emotion-free in this statement. I wrote that loss off a long time ago; it no longer stings. Doesn't mean I don't desire justice.

[SebastianJu]

I would prefer him having to work on restitution with a payback plan.

I reiterate:

To add insult to injury, Mr Montroll has made no effort to make restitution to his victims. He has continued to act in an opaque and cavalier manner, being non-responsive to any inquiries from the wronged parties. He has refused even to acknowledge the amounts stolen from the victims. This displays a contempt of those upon whom he preyed.

He definitely made a lot of wrong decisions. Biggest one in my eyes was handling the incident the way he did. Which included the silence. Biggest one for him would be the formal stupid moves that mean 30 years in jail. Would he have come clear, probably nothing would have happened at all besides running an unregistered exchanges or somewhat.

Regardless of that, the letter makes not much sense in a constructive way. To your knowledge he didn't try to handle things, ok, but you saying he shouldn't be able to try something now, for just some days, does sound like revenge only.

If he's gone everything will be gone ultimately, most probably. While even this Shavers only received less than 2 years. Somewhat crazy.

But I can understand your feelings, however, I learned emotions are never a good indicator for actions in crypto.

Montroll did not 'make wrong decisions'. He defrauded those who put trust in him. Then stonewalled any and all inquiry in an attempt to cover his tracks.

Even if he were to remain a free man -- even if he were to accept responsibility for his actions (he won't) and direct all his labors (really?) until death toward restitution (as if) -- you'll never get more than a penny on the dollar from him. He is utterly incapable of such. Your willingness to turn the other (ass) cheek (as he bends you over one more time) is a fool's forebearance.

At some point you need to accept that you've been royally screwed, have no hope of recouping your losses even with the hand of the state enforcing it, and move on to making him pay for his misdeeds. If not as punishment, at least as a signal to others who might be contemplating a similar life of crime.

edit:

As stated above: Mr Montroll should be sentenced in line with any other common grifter who preys upon innocent bystanders. Period.

Yes, Shavers got off lightly. I see no benefit in perpetuating such a miscarriage of justice.

Incidentally, I'm pretty emotion-free in this statement. I wrote that loss off a long time ago; it no longer stings. Doesn't mean I don't desire justice.

Well, thinking over the points that he still collected ukyo loan and allowed deposits to weexchange, even though he know the payouts won't be possible anymore, it's fraud, yes. Didn't really thought about that part yet. However, he tried to recoup the funds (in a way that now proved to be the wrong way) and he had other projects he worked on that might have helped pay funds back.

In any case, look who opened the "find trendon shavers in person" thread, who was taking part in the group finding the scammers behind labcoin and others. It's because people did not just give up that led to find scammers. Unfortunately often enough without a chance. Jon was not anonymous from the start like scammers normally do.

You might be right with him maybe not getting the big hit to pay back everything, still, he could try. And 30 years, that's like he murdered someone. Just crazy.

Also, you wouldn't put in the work to write a letter for having him in jail some days earlier, if you really wouldn't be involved emotionally anymore. If you would, you would just not care. Things like that are constantly hurting, probably we have to live with all of our "crypto errors" till the end.

Actually it's not that I don't hate scammers. Those labcoin scammers are trash. They are a disgrace to their mother and did it from a comfortable position. They never needed the money. And surely they have nothing left. That's the kind of scammers I fell for as well. My own stupid decision, however, that surely doesn't help me, just the opposite. I like to think that scams of that kind weren't so well known then, but it probably was more my own unexperience. Still, if there is a shred of a chance, I won't give up.

[jbreher]

However, he tried to recoup the funds (in a way that now proved to be the wrong way) and he had other projects he worked on that might have helped pay funds back.

'Tried to recoup the funds'? Sez you. Where's the evidence of such?

You might be right with him maybe not getting the big hit to pay back everything, still, he could try.

Could? Newsflash: No way in hell that he would try. Lying scammers scam and then lie about it.

And 30 years, that's like he murdered someone. Just crazy.

You'll note I did not call for 30 years in my letter. To re-reiterate:

Mr Montroll should be sentenced in line with any other common grifter who preys upon innocent bystanders. Period.

[Evolyn]

I accepted the loss long time ago, but nice to see things are still going on.

However, he tried to recoup the funds ...

Had to giggle here. From my point of view he did the opposite. I remember when things started to become shady he even asked if I have more funds to invest and at the same time when you asked whats going on the response was just 'nda'. At least I already wasn't that stupid back then to even throw more money at him at this point.

Back to adult reality, let’s note that the counts to which Montroll pleaded guilty and for which he has accepted responsibility are both Class C felonies. The rules provide for maximum term of imprisonment of 20 years. However, the defense notes that a probationary sentence of between one and five years is available.

If anyone reading this, who was affected by Montroll / Ukyo, and doesn't believe that the most he ought to get is some form of probationary house detention, they should consider putting pen to paper and writing to the same Judge:

http://nysd.uscourts.gov/judge/Berman

I'm so excitet, my first letter which is going around the world

[SebastianJu]

Well yes, nda, he worked on projects though, after all that went south. Of course non of his crypto related ones had a chance ... with his tainted name then.

Actually I did not know that he still asked for loans after that time, maybe I only followed the weex debacle. He probably did it like MagicalTux, after realizing he tried to fix everything through time, somehow. I probably wouldn't have to deal with it when he instantly stopped weex deposits as well. Too bad that at that time cold wallets were no thing. Everyone was so blue eyed.

Edit: Anyone still has contact to Graet?

Also, after reading this sentence again "The SEC’s New York Regional Office began an investigation into BitFunder and the Exploit", did anyone get in contact with the SEC about this? Or am I misinterpreting that they took a look at the "hack"?
And did someone sue weexchange? I'm not sure if I read something like that?

[SebastianJu]

What's wrong with the US nowadays? Everywhere you read about problems resulting from shutting down government agencies. ETF decisions, now it affects this case as well.

https://financefeeds.com/us-govt-shutdown-hampers-progress-lawsuit-targeting-bitfunder-operator-jon-montroll/

Newest article in the case is here: https://financefeeds.com/us-govt-seeks-prison-sentence-bitfunder-operator-jon-montroll/

Not sure what the 27 to 33 months refers to. It's not 30 years or is that another felony? Guess we took the numbers wrongly, those 2 years sound way more sane as punishment for a lie to the sec.

Did anyone read somewhere who Jon's lawyer is and how to contact him?