Trendon Shavers is sentenced to 18 month in prison over fraud
Trendon Shavers Bitcoin Savings and Trust founder was sentenced to 18 months in prison after being charged with federal tax fraud. He specified in the court that he involved and attracted people to invest in his company and promised them to obtain a weekly gain of the 7% of the investment and returns just 3% at the end of the year. According to this individual informants more than $ 4.5 million (at the time of investment) disappeared which is the resulting amount invested by all users, within it the money he should cancel for interest was.
In 2013 the company headed by Shavers was accused by the Securities and Exchange Commission (SEC) for anti-fraud laws violation and fiscal law security provisions registration. He was ordered to pay $ 1.23 million to each one of the 48 investors who lost their money in the Trendon company. He was also ordered to pay an equal amount as restitution charges for the operation of a the called “classic Ponzi scheme” between 2011 and 2012.
Jason Seibert, Trendon’s lawyer was accused in 2015 by the Securities and Exchange Commission of the US of authority abusing by questioning his client for hours even after he had pleaded guilty. The information obtained during the interrogation was then used in a parallel investigation without informing the defendant.
It was expected that Trendon sentence was of 20 years, but the probation resource was used so he could continue working and show indulgence of the judge, who cited “The man has earned his indulgence through the honest work done since his arrest in 2014 “which helped Trendon to receive a lesser sentence in this case 18 months.
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