Lawsuits

Update 21 November 2019: he Jury has reached a verdict. Mark S. Scott has been found guilty on both Counts:
– conspiracy to commit Money Laundering, and
– conspiracy to commit Bank Fraud.
Maximum combined penalty: 50 years in prison.

Update 3 November 2019: four OneCoin related lawsuits have been filed, below table contains a summary of the most important data.

Note: the Case Dockets of the criminal cases in the Court Listener RECAP Archive are not strictly separated, there are a number of redundancies and documents are filed in the wrong docket.

Type Case No/Parties Case Summary Case Dockets in
RECAP Archive
Criminal 1:17-cr-00630-ER-1
United States v. Mark S. Scott
On Monday 4 November 2019 09:00 AM New York time (14:00 GMT) Scott’s Trial by Jury before Judge Edgardo Ramos started with the selection of Jurors.

On 21 November 2019 the Jury reached a verdict. Mark S. Scott has been found guilty on both Counts: Money Laundering and Bank Fraud. Maximum penalty 50 years in prison.

Matthew Russell Lee of Inner City Press has live tweeted the proceedings via Twitter @InnerCityPress.

U.S. Attorneys Southern District of New York published a Press Release, partly quoted below (bold added):

Manhattan U.S. Attorney Geoffrey S. Berman said: “Mark S. Scott, an equity partner at a prominent international law firm, used his specialized knowledge as an experienced corporate lawyer to set up fake investment funds, which he used to launder hundreds of millions of dollars of fraud proceeds.

“OneCoin” is a massive pyramid fraud scheme. OneCoin Ltd. was co-founded in or about 2014 by Ruja Ignatova, and is based in Sofia, Bulgaria. SCOTT was introduced to Ignatova in late 2015, and began laundering OneCoin fraud proceeds in 2016. Ignatova served as OneCoin’s top leader until her disappearance from public view, in or about October 2017.

Among a number of other representations, OneCoin Ltd. has claimed that the OneCoin cryptocurrency is “mined” using mining servers maintained and operated by the company, and that the value of OneCoin is based on market supply and demand. The purported value of a OneCoin steadily grew from €0.50 to approximately €29.95 per coin, as of in or about January 2019. In fact, the value of OneCoin is determined internally and not based on market supply and demand, and OneCoins are not mined using computer resources. Moreover, the investigation has revealed that Ignatova and her co-founder conceived of and built the OneCoin business fully intending to use it to defraud investors.

SCOTT, who boasted about earning “50 by 50,” was paid more than $50 million for his money laundering services. He used that money to purchase, among other things, a collection of luxury watches worth hundreds of thousands of dollars, a Ferrari and several Porsches, a 57-foot Sunseeker yacht, and three multimillion-dollar seaside homes in Cape Cod, Massachusetts.

SCOTT, 51, of Coral Gables, Florida, was convicted of one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison, and one count of conspiracy to commit bank fraud, which carries a maximum potential sentence of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by the judge. Sentencing before Judge Ramos is scheduled for February 21, 2020.

 
Counts
18:1956-4999.F MONEY LAUNDERING – FRAUD, OTHER (CONSPIRACY) (1) / (1ss)
18:1956-4999.F CONSPIRACY TO COMMIT MONEY LAUNDERING (1s)
18:1349.F CONSPIRACY TO COMMIT BANK FRAUD (2s)
18:1349.F ATTEMPT AND CONSPIRACY TO COMMIT BANK FRAUD (2ss)

US v. Scott
Criminal 1:17-cr-00630-ER-2
United States v. Ruja Ignatova
aka Cryptoqueen
No Deadlines or Hearings have been announced as Ruja Ignatova is at large.

Counts
18:1349.F ATTEMPT AND CONSPIRACY TO COMMIT WIRE FRAUD (1) / (1s)
18:1343.F FRAUD BY WIRE, RADIO, OR TELEVISION (2) / (2s)
18:1956-4999.F MONEY LAUNDERING – FRAUD, OTHER (CONSPIRACY) (3) / (3s)
18:371.F CONSPIRACY TO COMMIT SECURITIES FRAUD (4s)
15:78J.F MANIPULATIVE AND DECEPTIVE DEVICES (SECURITIES FRAUD) (5s)

US v. Ignatova
Criminal 1:17-cr-00630-ER-3
United States v. Konstantin Ignatov
On Thursday 7 November 15:30 New York time (20:30 GMT) a Pre-Trial Conference was planned before Judge Edgardo Ramos. This Conference has been cancelled, because on 4 October 2019 Konstantin Ignatov and his lawyer Jeffrey Lichtman have signed a plea Deal. This was revealed during Mark Scott’s Trial, where Ignatov appeared as a Cooperating Witness. The Plea Agreement has been published by Inner City Press reporter Matthew Russell Lee (link to document on scribd.com).

Ignatov has pleaded guilty to three of the four Counts mentioned in the Agreement.

Counts
18:1343.F FRAUD BY WIRE, RADIO, OR TELEVISION
18:1349.F CONSPIRACY TO COMMIT WIRE FRAUD
18:1349.F CONSPIRACY TO COMMIT BANK FRAUD

US v. Ignatov
Criminal 1:19-mj-8240
United States v. David R. Pike
About March 2016 David Pike was appointed as a Director of MSS International Consultants Ltd, which acted as a British Virgin Islands investment fund manager for the Fenero Funds, that were used to launder proceeds of the OneCoin fraud scheme for Ruja Ignatova.

On 5 September 2018 (on the same day as Mark Scott’s arrest), at a voluntary interview with law enforcement agents, David R. Pike admitted that he knew that the money transferred into the Fenero Funds belonged to Ruja Ignatova, the principal leader of the OneCoin fraud scheme. Pike further admitted that all of the money was to be returned to Ignatova at some point. E-mail evidence gathered during the investigation corroborates Pike’s statement that Pike was fully aware that the money transferred into the Fenero Funds belonged to Ignatova.

At a subsequent interview of Pike on 4 December 2018, Pike lied and denied any knowledge that the money he and Scott managed in the Fenero Funds belonged to Ignatova or OneCoin. Pike stated that he only learned that the money invested in the Fenero Funds was derived from those sources after the Indictment charging Scott was unsealed and made public.

Pike was arrested and released on a $500,000 bail on 12 September 2019.

Under the Speedy Trial Act, the Government was initially required to file an Indictment or Information on or before 15 October 2019. Special Assistant United States Attorney Julieta V. Lozano and Pike’s counsel Marty Raskin are engaged in ongoing discussions concerning additional charges that might be brought in this case. The parties are in agreement that a Continuance in this case is appropriate. Honorable Katharine Parker – United States Magistrate Judge – has ordered a request for Continuance until 13 December 2019.

Counts
18:1001.F FALSE STATEMENTS

US v. Pike
Civil 1:19-cv-04074
Berdeaux/Grablis v. OneCoin Ltd

Defendants:
OneCoin Ltd.
Ruja Ignatova
Sebastian Greenwood
Konstantin Ignatov
Mark S. Scott
Irina Andreeva Dilkinska
David R. Pike
Nicole J. Huesmann

On 23 August 23 2019 Judge Valerie Elaine Caproni stayed all proceedings until all Defendants have been served.

In the First Amended Class Action Complaint, Lead Plaintiff Donald Berdeaux and plaintiff Christine Grablis allege claims under the federal securities laws and common law against key operators of OneCoin Ltd and certain of their enabling co-conspirators arising from a massive fraud perpetrated on millions of individual investors throughout the world causing injuries in excess of $4 billion through a densely-packed multi-level-marketing system.

This is a class action on behalf of a class of investors consisting of all individuals and entities who transferred to the OneCoin Defendants, directly or indirectly, any fiat currency or cryptocurrency to invest in a OneCoin trader/membership package and/or a purported digital cryptocurrency called “OneCoin” and who suffered financial injury as a result thereof. Upon information and belief, the financial harm caused by the fraudulent OneCoin Investment Programs exceeds four billion dollars ($4,000,000,000.00).

Plaintiffs, on behalf of themselves and all similarly situated individuals and entities that participated in the OneCoin Investment Programs, seek compensatory, exemplary, punitive, injunctive, and rescissory relief, providing rescission and repayment of all investments paid, directly or indirectly, to the OneCoin Defendants and the Scott Group, and securing and conserving such funds until repayment.

Berdeaux/Grablis v. OneCoin Ltd