BurtW arrested (update: charges dropped!)

[leopard2]

he'll do some real time, at least 2yrs, maybe 5yrs .. then halfway house, then 3yrs probation, felony conviction .. all for what? selling some fucking digital money? Absurd.

Typical for fascist regimes of all kinds: massive sentences for victimless or even crimeless crimes.

[1714053747]

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[1714053747]

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[1714053747]

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[ABitNut]

he'll do some real time, at least 2yrs, maybe 5yrs .. then halfway house, then 3yrs probation, felony conviction .. all for what? selling some fucking digital money? Absurd.

Typical for fascist regimes of all kinds: massive sentences for victimless or even crimeless crimes.

Lay back on the newspeak please. Victimless crimes is already pushing it, but crimeless crimes?!

[Kprawn]

Maybe he donated to his legal defense or started a thread to help raise money for the young guy who helped put bitcoin on the map.

You feel me?

I do, and yes who knows, maybe he did. Now there's a huge gap between what you do in private and what you do publicly, especially when you are the admin of the most watched Bitcoin board of the internets, with several posts already featured in various three-letter agencies reports.

Watched Citizen4 last night, and it's bizarre that every thing you do on the internet is recorded and stored, even if you not living within the borders of the USA.

You are given the false impression, that you safe and free, but your own government is working with other governments to spy on your every move.

What a sick world, we living in.

[QuestionAuthority]

Is Burt not responding in this thread because he's in jail without bail? Charlie was responding to people here with an ankle bracelet on under house arrest.

[thejaytiesto]

Is Burt not responding in this thread because he's in jail without bail? Charlie was responding to people here with an ankle bracelet on under house arrest.

Well hes probably under surveillance and dont want to risk posting stuff around in public or something.

[Madness]

I also would like to see if there is any news , Burt.W seems like he didn't connect since December on the forums
No changes but what his wife and daughter posted on that website http://www.burtw.com/

~ Madness

[theymos]

Is Burt not responding in this thread because he's in jail without bail? Charlie was responding to people here with an ankle bracelet on under house arrest.

He's not able to respond.

[QuestionAuthority]

Is Burt not responding in this thread because he's in jail without bail? Charlie was responding to people here with an ankle bracelet on under house arrest.

He's not able to respond.

Oh, that sucks. I always suspected that Charlie came from a wealthy family and could bankroll a good defense. Most people aren't that fortunate.

[DannyHamilton]

Gentlemen, in as much as many of us hate govt, please, if you choose to be a broker of money, a seller of money, or in the business of moving money FOR A FEE just get the license.

Not as easy done as said.

Here in Illinois for example:

http://msblicensing.weebly.com/illinois_money-transmitter-license-requirements.html

Specific license requirements for Illinois money transmitters.

To register as a money transmitter in the state of Illinois requires the following fees and documentation:

• Business organization documents, which vary depending on whether the business is a corporation, partnership, or other structure
• Audited financial statements certified by a licensed PA; unaudited balance sheet and statement of operation for most recent quarter certified by a corporate officer
• If a wholly owned subsidiary or able to file consolidated tax returns with parent, company may submit unaudited financial statements for the preceding year and most recent quarter along with the audited financial statements of the parent company
• SEC filings
• List of all other states the applicant is licensed in, name and address of the respective regulator
• Complete list of all current and proposed money transmitters in state of Illinois
• Sample contract for authorized sellers
• Name and address of clearing banks through which business will be conducted
• $100 application fee
• $100 license fee + $10 per location
• $10 processing fee
• Written statement acknowledging that the applicant is in full compliance with and agrees to fully comply with state and federal money laundering regulations
• Name, title, and percent stock ownership of every officer, director, or shareholder with over 10% ownership interest
• Business experience, convictions, and material litigation history over past 10 years for every officer, director, or shareholder with over 10% interest
• Appointment of attorney-in-fact for service of process

Note: in Illinois, the net worth requirement for money transmitters varies by location.


What are the Illinois surety bonding requirements?

Bonding requirements for Illinois money transmitter license include:
In Illinois, the bonding requirement for applicants is $100,000 or an amount equal to the daily average of outstanding payment instruments for the preceding 12 months or operational history (whichever is shorter). Requirements may not exceed $2,000,000.

When the bond amount exceeds $1,000,000, the applicant or licensee may post a bond in the amount of $1,000,000 plus a dollar for dollar increase in the net worth of the applicant or licensee over and above the required amount, up to a total amount of $2,000,000

Fortunately, the Illinois Department of Financial & Professional Regulation recently released a notice indicating that Illinois residents don't currently need a state license to buy and sell bitcoins:

http://www.idfpr.com/

Notice Regarding Virtual Currency Licensure

The Illinois Department of Financial and Professional Regulation (IDFPR) has not yet made a determination as to the requirement of licensure of virtual currency (also known as crypto currency) providers, converters and/or exchangers, or dispensing machines (ATMs) but continues to review the matter. IDFPR is not accepting applications for virtual currency licensure at this time.

IDFPR recommends that all parties interested in virtual currency issues regularly monitor IDFPR's website for further updates. IDFPR will not penalize Applicants/Licensees for any virtual currency activity conducted in the State of Illinois during the deliberative process should it be determined that licensure is required.

[suman66]

details of

Name:   BurtW
Posts:   4422
Activity:   1218

last login
Last Active:   December 28, 2014, 05:52:18 AM

he is no more active

[sed]

The whole thing is still shocking.  I don't know what BurtW did or didn't do but I'm quite surprised that if his accused crime is selling bitcoins without a license that he doesn't just owe fees or taxes to the IRS or something.  Why arrested?

[newIndia]

The whole thing is still shocking.  I don't know what BurtW did or didn't do but I'm quite surprised that if his accused crime is selling bitcoins without a license that he doesn't just owe fees or taxes to the IRS or something.  Why arrested?

AFAIK, the allegation is that he agreed to sell coins at higher than market value to an undercover agent who claimed to use it for illegal purpose. Selling coins knowingly that would be used for illegal purpose is probably the crime here. I actually read it somewhere in this long thread. Could not find the link though...

[moriartybitcoin]

the feds need a conviction to scare other people on localbitcoins to stop selling/buying btc .. if they can drive buyers and sellers to the big exchanges like coinbase they can totally regulate bitcoin, which is of course their goal

[NEM minnow]

Likely a sting operation, in which he agreed to proceed with BTC transaction knowing the funds will be used for something illegal.

These MSB stings are weird.

It could be the case that no crime is ever committed by the accused beyond the disregard for the possibility of someone else doing something in a place where it is considered wrong...

I imagine a case where a sting is done by picking names off a LocalBitcoin list in some LEO's home turf.  They pick a fellow that has done 5 or 10 trades and has some ratings, and they do a deal and LEO mentions they are buying acid with it.  
The bitcoin seller assumes they are going to order some legal low-pH chemical online, the LEO arrests the seller for money laundering claiming that he told the seller he was buying drugs.

The accusations will be horrific, because the LEO gets to seize all sorts of property, some of which go straight to their expense account.  Judge and Jury give deference to LEO because that is the standard practice.  People reading the media releases will form judgements based on the accusations, far ahead of any trial.  Defendant will get pressured to plead guilty to a slightly lessor charge.  Jail and impoverishment by legalized theft follow.  Having bought or sold a few bitcoin with strangers for very small money (way under any legal limits) I can see how it could happen to just about anyone.

"Let's be careful out there."

because low ph chemical online retailers only accept Bitcoin?  get your head out of a delusion world.  nobody would assume that. 

the fact is when you sell somebody bitcoins, you need to make sure (or at least not know) they are going to be used for criminal activities. 

this doesn't just apply to bitcoins.  I am also pretty sure if you sell somebody a gun and they tell you they are going to murder somebody with it and you still sell it to them, you can go to jail. 

[jbreher]

AFAIK, the allegation is that he agreed to sell coins at higher than market value to an undercover agent who claimed to use it for illegal purpose.

As far as you know, or as far as you think you might have kinda maybe seen someone make a thinly veiled unsupported allegation of, though you cannot remember who, what, nor where?

[jbreher]

Remember there is no license necessary if you are buying and selling BTC for personal use; once you put yourself out as a business you need a license.

BurtW's business is something other than exchanging forms of money. Tru story dat.

[98problems]

AFAIK, the allegation is that he agreed to sell coins at higher than market value to an undercover agent who claimed to use it for illegal purpose.

As far as you know, or as far as you think you might have kinda maybe seen someone make a thinly veiled unsupported allegation of, though you cannot remember who, what, nor where?

I have not really seen any speculation to support this person's claims, however that is what happened with previous traders who were arrested while trading on LBC.

While the fact that this case has anything to do with any deal on LBC is speculation in itself, I would really not see any other way they would have caught him breaking the law.

[Gleb Gamow]

The whole thing is still shocking.  I don't know what BurtW did or didn't do but I'm quite surprised that if his accused crime is selling bitcoins without a license that he doesn't just owe fees or taxes to the IRS or something.  Why arrested?

AFAIK, the allegation is that he agreed to sell coins at higher than market value to an undercover agent who claimed to use it for illegal purpose. Selling coins knowingly that would be used for illegal purpose is probably the crime here. I actually read it somewhere in this long thread. Could not find the link though...

Now, that makes sense:

BW: Here, yea! Here, yea! Here, yea! I'm selling BTC at X dollars.
Anon: Would you consider selling BTC for X + Y per, for I need them badly to make some illegal purchases.
BW: Okay, but only this once. I don't want it to get out that I'm selling over the average spot.
Anon: You can trust me.
BW: How much worth do you want?
Anon: Well, since my boss only allocated $100 toward this sting, I'll take that amount worth.
BW: Fine, but remember, mums the word.
Anon: <he fell for it, Captain, now circle him before he high-tails it>

[NEM minnow]

AFAIK, the allegation is that he agreed to sell coins at higher than market value to an undercover agent who claimed to use it for illegal purpose.

As far as you know, or as far as you think you might have kinda maybe seen someone make a thinly veiled unsupported allegation of, though you cannot remember who, what, nor where?

A few people got burnt, now the rest of us should know.  "Don't ask, don't tell".  If you are the seller, up front say, "don't tell me what you are using these for and there won't be any problems".  It isn't that hard.  And if somebody then does tell you, well...... good chance they are a cop. 

[edd]

If you are the seller, up front say, "don't tell me what you are using these for and there won't be any problems".  It isn't that hard. 

That would sound very suspicious and may even be taken as admitting that you're willing to help criminals as long as you don't assume any risk yourself.

A better tactic is just to avoid dealing with anyone giving you reason to believe they are involved in criminal activities or a cop trying to entrap you.