US Court Concurs with Evidence Proving OneCoin Money Laundering Operation
Pieces and bits of the case against OneCoin and its executives by DOJ are being put together, and we can now get a clear picture of where the case is headed. Pieces of evidence have unsealed the bits, and it makes things more understandable.
Recent filings containing potentially privileged information show that there is a sealed order that reveals the position of the New York case on DOJ’s evidence. This revealing order was made on July 23rd. It was in response to a filing that requested permission to “apply a crime-fraud exception” by DOJ, to privileged communications.
The communications are between OneCoin, companies affiliated to OneCoin, insiders, its executives, and attorneys.
The court however observed that for such an exception to apply (crime-fraud) the government should show that
“(1) a fraud or crime has been attempted or committed, and
(2) the communications or materials in question were in furtherance of the fraud or crime.”
The government says that it satisfies the requirement of the probable cause and specifically money laundering and wire fraud. The complaints establish that
(1) There is a probability that OneCoin is a fraudulent pyramid scheme.
(2) That Ruja Ignatova and Mark Scott took part in a conspiracy to defraud the OneCoin fraud proceeds.
(3) That Scott was involved in the laundering of almost $400 million from 2016 to 2018 from OneCoin scheme.
The evidence clearly shows that parties belonging to OneCoin, including Ignatova and the International Marketing Strategies Limited did seek and acquired legal advice from Scott. It also revealed that Scott initiated MSSI to obtain millions of dollars for OneCoin illegally.
Evidence also proved that the receiving firms facilitated fraudulent activities and thus facilitating the laundering scheme. The order is, however, not a judgment, but it clearly shows the evidence by DOJ is substantial.
The information is convincing enough that the US court concurs that OneCoin is a pyramid scheme and indeed money laundering happened.