[2014-11-06] Reuters: Texan charged in first bitcoin securities fraud Ponzi case

[OleOle]

Texan charged in first bitcoin securities fraud Ponzi case

"(Reuters) - A Texas man who operated Bitcoin Savings and Trust was charged on Thursday with bilking his investors, in what prosecutors called the first federal criminal securities fraud case arising from a bitcoin-related Ponzi scheme.

Trendon Shavers, 32, of McKinney, Texas, was charged with misappropriating about 146,000 of the 764,000 bitcoin, then worth more than $4.5 million, that he raised from September 2011 to September 2012 by promising investors "absurdly high" interest rates, U.S. Attorney Preet Bharara in Manhattan said."


http://www.reuters.com/article/2014/11/06/us-bitcoin-charges-idUSKBN0IQ21I20141106?feedType=RSS&feedName=technologyNews



 

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[H.W.Z]

The users should get a warning about such ponzi scheme again. The scammers are alway promising higher interest rates and even interest rate can be paid every day. We should get away.  

[LiteCoinGuy]

http://www.coindesk.com/bitcoin-ponzi-schemer-charged-criminal-securities-fraud/

Each charge has a maximum penalty of 20 years with potential fines totaling upwards of $5m.

Shavers, 32, has already been fined $40m by a federal judge in north Texas in a Securities and Exchange Commission (SEC) -related case. This arrest is for criminal charges of fraud brought by the US Attorney in Manhattan.

Calling his scheme Bitcoin Savings and Trust (BTCST), Shavers promised a 7% return per week to potential investors.



thats a long time  


Calling his scheme Bitcoin Savings and Trust (BTCST), Shavers promised a 7% return per week to potential investors.

customers should be fined with 5 years