Alleged Bitcoin Fraudster Extradited From Morocco To The United States

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The U.S. Federal Bureau of Investigations has disclosed that a British national accused of defrauding amounts totaling over $36 million by not only making material misrepresentations but also misappropriating investment funds with regards to two firms, Bar Works and Bitcoin Store, has been successfully extradited to the United States.

The Briton, Renwick Haddow, was nabbed in Morocco after a provisional arrest warrant was issued last year in July. This came after fraud charges were filed against him by the U.S. Securities and Exchange Commission.

Haddow?s methods involved getting sales representatives to make cold calls on potential investors with a view to selling securities in two firms that he controlled. The alleged fraudster is said to have hidden his involvement since he had a shady past.

Non-existent executives

Per the complaint filed by the Securities and Exchange Commission Haddow presented to potential investors promotional materials that featured senior executives who actually didn?t exist. Additionally Haddow engaged in a misrepresentation of key facts with regards to the operations.

The Briton is alleged to have diverted over 80% of the funds that were raised for the Bitcoin Store outfit. Haddow is said to have transferred over $1 million from the bank accounts of Bar Works to Morocco and $4 million to Mauritius.

According to materials that were presented to investors in Bitcoin Store, Haddow claimed that the outfit was a secure and convenient way of trading and holding bitcoin. Haddow also claimed that Bitcoin Store had generated gross sales running into millions of dollars. But according to the Securities and Exchange Commission Bitcoin Store neither had real operations nor did it generate the gross sales Haddow claimed it did.

Fake name

Three years ago for instance the bank accounts of Bitcoin Store received under $250,000 in incoming transfer but none of the amounts appeared to emanate from paying customers. In order to conceal his involvement, Haddow used ?Jonathan Black? as an alias.

Haddow also lied that he possessed wide experience in finance. The two wire fraud counts means Haddow could face up to four decades in prison as each carries a maximum sentence of 20 years.

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