Man found guilty by federal jury in connection to multiple fraudulent schemes involving business ventures and cryptocurrency

SACRAMENTO, Calif. - A federal jury has found a former South Lake Tahoe man guilty of running multiple fraudulent schemes involving cryptocurrency companies and sham business ventures that defrauded investors of nearly one million dollars.The United States Department of Justice says that 53-year-old Daniel Chartraw, formerly of South Lake Tahoe and Lodi, was convicted after an 8-day trial that concluded Thursday."This verdict sends a clear message: individuals who exploit the trust of others and steal through deception will be held accountable," U.S. Attorney Eric Grant said. "The defendant lied to investors and caused serious financial and emotional harm. Our office will continue to pursue those who use emerging technologies, including cryptocurrency, as vehicles for fraud."Evidence presented at trial showed Chartraw and an associate controlled multiple companies, including Crypto-Pal LLC and TDA Global LLC, between March 2021 and February 2022.Chartraw and individuals acting on his behalf represented that Crypto-Pal was a web-based cryptocurrency trading company that guaranteed high returns with no risk.The Department of Justice says that Chartraw also claimed at various points that TDA Global was engaged in supplying jet fuel to airlines or operated its own cryptocurrency trading platform.He communicated with potential and existing investors through phone calls, text messages, email and virtual meetings using platforms such as Microsoft Teams and Zoom.Chartraw frequently used aliases such as "Leonard" or "Leon," telling associates that he needed to conceal his identity because of a prior fraud conviction. Many investors ultimately learned that Chartraw was controlling the businesses and their accounts.According to the United States Department of Justice, Chartraw repeatedly accessed the Crypto-Pal business bank account to withdraw cash, make purchases and transfer investor funds to accounts he personally controlled, even though he was not a signatory on the account.He cultivated trust through personal and professional relationships, using fabricated account statements, false assurances of growth and repeated misrepresentations to persuade victims to invest additional funds.When investors attempted to recover their money or questioned delays, Chartraw provided excuses, deflected responsibility or stopped communicating altogether.In several cases, individuals were referred to him through friends or family and were convinced to transfer cryptocurrency or cash, based on promises that their money would be actively traded.None of these funds were ever invested as represented. Across all schemes, investors received neither returns nor the return of their principal.The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jessica Delaney and J. Douglas Harman are prosecuting the case.Chartraw is scheduled to be sentenced by Senior U.S. District Judge William B. Shubb on Sept. 28. Chartraw faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count.However, the Department of Justice says that the actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines. freestar.config.enabled_slots.push({ placementName: "actionnewsnow-com_blox_yup-rectangle-one", slotId: "actionnewsnow-com_blox_yup-rectangle-one", targeting: { "pos": "yup-rectangle-one" } }); Source: https://www.actionnewsnow.com/news/man-found-guilty-by-federal-jury-in-connection-to-multiple-fraudulent-schemes-involving-business-ventures/article_c9d27504-de06-43d0-a79a-96991abd6150.html