Former Partner at U.S. Law Firm Sentenced to 10 Years in Prison for $400 Million Cryptocurrency Scheme
Former partner at Locke Lord law firm, Mark Scott, has received a 10-year prison sentence for his involvement in a $400 million fraudulent cryptocurrency scheme. Manhattan federal prosecutors successfully charged Scott with conspiracy to commit money laundering and conspiracy to commit bank fraud in November 2019, related to his role in the OneCoin cryptocurrency fraud. On Thursday, U.S. District Judge Edgardo Ramos ordered Scott to forfeit $392,940,000 and various assets, including bank accounts, luxury cars, a yacht, and real estate properties.
The Financial Success Through Fraud Ends with a Decade in Prison
Damian Williams, the Manhattan U.S. Attorney, emphasized in a statement that Scott attained financial success through fraud and deception, accumulating $50 million by age 50. Williams stated that Scott accomplished his goal through illegitimate means and will now face a decade in prison, with all his illegal proceeds confiscated. Prosecutors revealed that Scott’s involvement started in 2015 when he met OneCoin co-founder Ruja Ignatova, also known as the “Cryptoqueen.” Subsequently, he played a crucial role in creating fake investment funds to launder millions of dollars in fraudulent proceeds.
Defense Pleads for Five-Year Sentence, Prosecutors Push for Minimum of 17 Years
Scott’s defense team sought a five-year prison sentence for him, citing his alleged broken state after spending the last four years in home confinement. However, prosecutors argued for a minimum sentence of 17 years, highlighting Scott’s greed and dissatisfaction with his already opulent lifestyle as a partner at a prestigious law firm. Scott, who was disbarred by a New York state appellate court in November 2020, previously worked as an international mergers and acquisitions and private equity partner at Locke Lord from June 2015 to September 2016.
Co-founder of OneCoin Scheme Receives 20-Year Prison Sentence
Karl Sebastian Greenwood, another co-founder of the OneCoin fraudulent scheme, was sentenced to 20 years in prison in September and ordered to forfeit $300 million. Meanwhile, Ruja Ignatova, the elusive “Cryptoqueen,” remains at large, and she was added to the FBI’s top 10 most wanted list in 2022.
Future Actions and Scott’s Legal Response Awaited
Scott’s lawyers have not yet responded to the recent developments, and it remains to be seen how they will proceed. With the sentencing now complete, attention turns to the next steps in the case, including potential appeals and the ongoing hunt for Ruja Ignatova. The outcome of this landmark case serves as a stern warning for those involved in fraudulent cryptocurrency schemes, further highlighting the efforts of law enforcement to crack down on financial fraud in the digital space.
Analyst comment
Negative news:
Former Partner at U.S. Law Firm Sentenced to 10 Years in Prison for $400 Million Cryptocurrency Scheme. Market Impact: The sentencing of Scott highlights law enforcement’s commitment to cracking down on fraudulent cryptocurrency schemes, which could lead to increased trust and legitimacy in the market. However, it may also create some fear and caution among investors.
