SANTA ANA, California – A San Bernardino County man was sentenced as we speak to 36 months in federal jail for working an unlicensed enterprise that exchanged at the very least $13 million in Bitcoin and money, typically for drug traffickers.
Hugo Sergio Mejia, 50, of Ontario, was sentenced by United States District Choose Cormac J. Carney. Mejia pleaded responsible on July 1 to at least one rely of working an unlicensed cash transmitting enterprise and one rely of cash laundering.
From Could 2018 to September 2020, Mejia operated a digital foreign money enterprise that exchanged Bitcoin for money, and vice versa, charging commissions for these transactions. Mejia by no means registered his enterprise with the Monetary Crimes Enforcement Community, a bureau with america Division of the Treasury that collects and analyzes info to fight monetary crimes, together with cash laundering.
Through the practically 2½-year interval, in accordance with the plea settlement, Mejia exchanged at the very least $13 million.
Mejia additionally established corporations to masks his true exercise, together with Worldwide Safe Communications LLC, World Safe Information, and The HODL Group LLC. Mejia marketed his enterprise on-line and was referred to clients by phrase of mouth, speaking with them by way of encrypted messaging companies and assembly them in individual at espresso outlets.
On a number of events between Could 2019 and March 2020, Mejia met with a consumer, who was working with legislation enforcement, to alternate Bitcoin for tens of hundreds of {dollars} in money. On March 12, 2020, Mejia met with the consumer at a espresso store in Irvine and facilitated the alternate of 14.273 Bitcoin for $82,150 in money plus charges. Throughout this assembly, the consumer knowledgeable Mejia that his main buyer was a methamphetamine purchaser in Australia who bought methamphetamine each 4 to 6 weeks and offered it in Australia for 5 occasions greater than the typical value in america.
Mejia and the consumer who was working with legislation enforcement carried out 5 Bitcoin-cash transactions that cumulatively exceeded $250,000.
“[Mejia] knew in regards to the relevant laws governing his cash alternate enterprise and purposefully flouted them,” prosecutors wrote in a sentencing memorandum. “That’s as a result of [Mejia] structured his cash alternate enterprise with the intent to determine an nameless conduit for cash laundering of drug trafficking proceeds.”
As a part of his plea settlement with the federal government, Mejia agreed to forfeit all belongings derived from the unlawful conduct, together with $233,987 in money seized from residences in Santa Ana and Ontario, silver cash and bars, and roughly $95,587 in varied cryptocurrency seized.
IRS Felony Investigation and Homeland Safety Investigations investigated this matter and acquired help from the Costa Mesa Police Division.
Assistant United States Legal professional Jason C. Pang of the Worldwide Narcotics, Cash Laundering and Racketeering Part prosecuted this case. Assistant United States Legal professional Brett A. Whittlesey of the Asset Forfeiture Part dealt with the asset forfeiture portion of this case.
