Registered Sex Offender on Probation Pleads Guilty to Material False Statements and Unregistered Bitcoin Business
A registered sex offender in Rochester pled guilty in U.S. District Court to operating an unlicensed virtual money exchange and transmitting business. He also pled guilty to making material false statements. Although he was scheduled to go to trial, he chose to enter guilty pleas instead. The defendant faces a maximum five-year federal prison sentence. The defendant served time for a 2009 conviction involving the transport of child pornography across state lines. He was on post-release supervision (probation).
The terms of his probation involved notification to his probation officer regarding the use of computers. He consented to examination(s) of any computers he used, according to the U.S. Attorney’s Office. The defendant lied to one or more federal probation officers concerning his use of a laptop and smartphone. In October 2015, he told a probation officer that he didn’t use a computer or device to access the Internet.
The defendant was caught by an undercover federal agent when he completed a bitcoin (btc) transaction. Bitcoin is a virtual digital currency and doesn’t involve actual bills or coins. He used a laptop and smartphone to transfer approximately $13,000 to a bitcoin address provided by the agent.
Federal probation officers asked about the bitcoin activity, but the defendant denied making the transaction. He argued that the computer and smartphone weren’t his.
Authorities say that the defendant didn’t register the bitcoin business according to New York state laws and the terms of his probation. Regulators say that buyers with whom the defendant transacted digital currency orders used the bitcoin to purchase illegal substances on the dark net.
Like many criminal cases, this example involves several complex issues. The defendant is a registered sex offender. He served a prison sentence and broke the terms of his probation. If he served fewer years than the original sentence required in lieu of probation, he may be required to serve more time in addition to a new prison term.
LaDuca Law Firm has more than 40 years of experience in defending the legal rights of clients charged with serious crimes. If you or a loved one has been charged with a sex, drug, or white-collar crime, call the criminal defense team at LaDuca Law Firm now.
