Twenty-six-year-old Esteban Cabrera Da Corte, the leader of a Miami crew, has pleaded guilty to defrauding US banks and 'a leading cryptocurrency exchange' of over $4 million through fraudulent reversals. US prosecutors on Wednesday said Da Corte deployed false and stolen identities to perpetrate the scheme.
According to Damian Williams, the US Attorney for the Southern District of New York, Da Corte and his co-conspirators in around March 2020 opened various accounts with an unnamed crypto exchange using fake US passports, drivers’ licenses and stolen personally identity information. These accounts were then linked to bank accounts operated by Da Corte and his crew.
How the Scheme Was Run: DOJ
Furthermore, the Department of Justice (DOJ) in the statement explained that Da Corte and his crew bought cryptocurrencies from the crypto exchange using cash deposited into the bank accounts via Automated Teller Machines (ATMs). However, this purchase of cryptocurrency was immediately transferred to other digital asset wallets outside the exchange and controlled by the crew.
After this process, the prosecutors alleged that Da Corte and his team started to make phone calls to their US bank account providers, falsely claiming that the cryptocurrency transactions were unauthorized. As a result of their claims, the banks reversed the purchases, prosecutors said.
“The operation of this scheme by the Defendants resulted in US banks processing more than $4 million in fraudulent reversals and the Cryptocurrency Exchange losing more than $3.5 million worth of cryptocurrency,” the DOJ added.
Man Faces Up to 20 Years in Prison
As a result of Da Corte’s guilty plea to conspiracy to commit wire fraud, he now faces up to 20 years in prison, prosecutors said, adding that the crew leader has agreed to pay approximately $3.6 million in restitution. In addition, he has agreed to forfeit $1.2 million.
“Our Office will continue to work vigorously with our law enforcement partners to protect the integrity of U.S. banks and financial markets to the full extent of the law from those who seek to enrich themselves through fraud and deceit, including those who attempt to shroud themselves in the anonymity of digital transactions,” said Williams.
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This article was written by Solomon Oladipupo at www.financemagnates.com.
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