BurtW arrested (update: charges dropped!)

[theymos]

BurtW was recently arrested. The indictment (located by Raize):
http://www.scribd.com/doc/248973784/Bitcoin-indictment

Is there anything we can do to help him? There's a site with a donation address, though I'm a little suspicious that the site might be fake. (The arrest itself is very likely real.)

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[theymos]

The indictment says:

involved the transport and transmission of funds that were known to the defendant to have been derived from a criminal offense and were intended to be used to promote and support unlawful activity

I wonder what that's about. I doubt that he was knowingly helping the Silk Road or anything like that...

[Blazr]

OMG! BurtW was a great guy and very active here. I believe he mostly did cash transactions, I hope this isn't another one of those localbitcoins "stings".

A link to his profile here:
https://bitcointalk.org/index.php?action=profile;u=14808

We need to help him.

[mayax]

OMG! BurtW was a great guy and very active here. I believe he mostly did cash transactions, I hope this isn't another one of those localbitcoins "stings".

A link to his profile here:
https://bitcointalk.org/index.php?action=profile;u=14808

We need to help him.

there is no help for him now.... he knew what he is doing

[jonald_fyookball]

OMG! BurtW was a great guy and very active here. I believe he mostly did cash transactions, I hope this isn't another one of those localbitcoins "stings".

I'm afraid it might very well be.  he needs a good lawyer.

[haploid23]

WOW. No wonder he was absent from here for months. It must have been a sting operation.

And he was raving about how safe it was dealing with face to face cash transactions, and how he does it all the time :/

[Gumbork]

he should be out on bond, im sure hes lawyer wants him to keep a low profile.

[knight22]

Thank God the nany government is there so we can now live in a safer world. /s

[Wendigo]

PENALTY:
COUNT 1:
 NMT 5 years imprisonment; $250,000.00 fine, or both;  NMT 3 years Supervised Release, $100.00 Special Assessment Fee

Looks like the sum was a pretty substantial one.

[jacktheking]

Huh? What happen, I dont understand those too 'official' term. Could someone explain in a 'normal-human' term? What did he do?

[bitcoin_bagholder]

OMG! BurtW was a great guy and very active here. I believe he mostly did cash transactions, I hope this isn't another one of those localbitcoins "stings".

I'm afraid it might very well be.  he needs a good lawyer.

Has there been many of these "stings", whereby the undercover officer mentions illegal activity halfway through the deal and thus "entraps" (IMO) the suspect into incriminating themselves if they continue the transaction?

Yes: http://www.virtualcurrencyreport.com/2014/02/two-florida-users-of-localbitcoins-com-arrested-for-money-laundering-and-unlicensed-money-transmission/

[sana54210]

How much bitcoins BurtW traded to get arrested?

[mlferro]

How much bitcoins BurtW traded to get arrested?

I'm also curious to know this

[bigredbutton]

I doubt it the bitcoin amount they are concerned with but most likely the USD amount. The man wants his cut! Especially when the amounts start to get anywhere close to 10k.

Right now one is free to stack Bitcoins to the sky with minimal reprecussion but once you start dealing in USD you better have your shit straight.

[mkc]

Is he the guy from FL? Undercover cop trying to buy 25k bitcoins from him at 10% over market price, if I remember correctly.

[QuestionAuthority]

I guess this means Bruno won't be able to buy back his Phinn account any time soon.

With all these busts it sure seems like the USA is gunning for bitcoiners. The only time you see law enforcement use entrapment stings is for drugs.

[smoothie]

I'd like to know more specifics on what illegal activity he knowingly aiding.

[smoothie]

Here it is:

BURTON WAGNER,
 did knowingly conduct, control, manage, supervise, direct, or own all or part of an unlicensed money transmitting business affecting interstate and foreign commerce, to wit, a digital currency exchange business which (A) operated without an appropriate money transmitting license in a state where such operation is punishable as a misdemeanor or felony under state law; (B) failed to comply with the money transmitting business regulations under Section 5330 of Title 31, United States Code, and regulations prescribed thereunder; and (C) involved the transport and transmission of funds that were known to the defendant to have been derived from a criminal offense

[btbrae]

BURTON WAGNER,
 (C) involved the transport and transmission of funds that were known to the defendant to have been derived from a criminal offense

It comes down to that again. The temptation for profit I'm sure is too much for some people, although I hope he's innocent.

[freebit13]

From the document, it doesn't look like this was from simple face to face transactions using localbitcoins... it looks like he was somehow involved with running an exchange.