Authorities To Imprison A Man From Ohio For Defrauding $30 Million In A Cryptocurrency Scam

An Ohio man will be getting 20 years in prison for carrying out a cryptocurrency scam. Michael Ackerman has pleaded guilty to the crime and might be spending a long time in prison. According to the US Justice Department, the man pleaded guilty to the multi-million dollar cryptocurrency scam last week.

A Cryptocurrency Scam Worth Of Millions

Michael Ackerman planned and executed a cryptocurrency scam in 2017. This scheme promised to pay investors 15% on their investments every month. Even though the benefits were too dubious and impossible, many investors rushed in to utilize the opportunity.

The scam was called the “Q3 Trading Club,” a fund that used investor’s money to make the supposed profits to be shared as returns.

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On September 8, 2021, a US attorney, Audrey Strauss from the New York Southern District, announced that Ackerman had pleaded guilty to the charges. According to Strauss, the man agreed to have caused the victims to lose above $30 million in cryptocurrency assets.

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In the announcement, the attorney stressed that Arkerman agreed to have used his fake crypto scheme to steal millions from investors with the promise of 15% monthly returns.

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In addition, Strauss also disclosed that Michael Ackerman used fake documents to deceive the investors. His balances showed more than $315 million in the fund. But the reality was just a little above $5 million from the DoJ’s discoveries.

The attorney also revealed that Ackerman stole investors’ money amounting to $9 million just to continue his lavish lifestyle. The man spent a lot of money on vehicles, real estate, personal security, traveling, and jewelry.

Michael Ackerman Agrees To Pay

The announcement also stated that Michael Ackerman has pleaded guilty to wire fraud. He agreed to pay back $30 million and forfeit at least $36 million in real estate, jewelry, cash which he acquired fraudulently. As for now, the sentencing will take place on January 5th, 2022.

The first charges came from the SEC in 2020. The crime was the violation of securities laws by Michael Ackerman.

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The reports then showed that he used a private group that he created on Facebook to target physicians. The group was called “Physicians Dad’s Group,” and the SEC discovered his fraudulent intent.

Michael Ackerman has never worked as an institutional broker in the New York Stock Exchange. Instead, he was operating as one of three scammers, including James, a Wells Fargo financial advisor, and another member, a surgeon called Quan Tran. In 2020 April, the victims of the incident sued Fargo for not investigating its employee.

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Ohio man pleads guilty to fraud over $30M crypto scam promising 15% monthly

The man behind a multi-million dollar cryptocurrency scam has pleaded guilty to fraud this week according to the U.S. Department of Justice.

Ohio man Michael Ackerman could face up to 20 years inside following the guilty plea for defrauding investors in a crypto scam he orchestrated in 2017. The too good to be true scheme lured hundreds of investors who deposited USD into a crypto fund called the Q3 Trading Club promising 15% monthly returns.

U.S. attorney for the Southern District of New York, Audrey Strauss, announced the guilty plea on Sept. 8 stating that Ackerman admitted to causing losses of more than $30 million from victims.

“As he admitted today, Michael Ackerman raised millions of dollars in investments for his fake cryptocurrency scheme by falsely touting monthly returns of over 15 percent.”

Strauss added that he falsified documents to convince investors into believing his fund had a balance of more than $315 million. In reality, the fund never had a balance over $5 million according to the DoJ.

It added that Ackerman stole $9 million from investor contributions to “bankroll a lavish lifestyle” that included real estate, jewelry, vehicles, travel, and personal security services.

The 52-year-old pleaded guilty to charges of wire fraud and agreed to make recompense of at least $30 million while forfeiting $36 million in cash, real estate, and jewelry he fraudulently acquired. Ackerman is due to be sentenced on January 5, 2022.

He was initially charged by the Securities and Exchange Commission in February 2020 for violating securities laws. At the time it was reported that he targeted physicians in particular via a private “Physicians Dads Group” on Facebook.

Related: Q3 Crypto Ponzi Victims File Class Action Lawsuit Against Wells Fargo

Ackerman, who was a New York Stock Exchange institutional broker, operated as part of a trio that included James Seijas, a former financial advisor for Wells Fargo, and surgeon Quan Tran.

Victims of the scam sued Wells Fargo in April 2020 for failing to investigate the activities of an employee.


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