Reginald Fowler, the man looking at a long time behind bars for running a cryptocurrency shadow bank and committing money fraud, appeared before a judge earlier this month, where he was expected to plead guilty as he faces overwhelming evidence. However, in an attempt to avoid having to pay hundreds of millions of dollars in fines and restitution, he decided to plead not guilty, forcing the case to trial. Fowler may wish he had stuck with the guilty plea, as federal prosecutors are ready to add more charges to the list of crimes that he committed. The latest appear to be tied to his failed attempt to become a major backer of the now-defunct Alliance of American Football (AAF).
Fowler, who was behind Global Trading Solutions and who has ties to Crypto Capital, is now being accused of obtaining funds through “means of false and fraudulent pretenses.” The destination of those funds, while not specified in the indictment, was a sports organization and the crimes allegedly took place when Fowler was working on becoming a major investor of the AAF in 2018. He had turned over $25 million to the organization before running into financial troubles, a partial reason why the alternative to the NFL went under.
According to the indictment, a copy of which was posted by CoinDesk, “Fowler defrauded individuals associated with a professional sports league (the ‘League’) in connection with his acquisition of an ownership stake in the League, inter alia, (i) by falsely claiming personal ownership of funds that were, in truth and in fact, funds Fowler had obtained through the unlicensed money transmitting business charged in Count Four of this Indictment and (ii) by converting those individuals’ funds toward his investment in the League.”
Fowler had also previously, in 2014, been a minority owner of the Minnesota Vikings after an attempt to purchase the team failed. The Vikings are most likely glad, as it might have been pulled under, as well. Global and Crypto Capital worked with the Bitfinex and QuadrigaCX exchanges, both of which have had serious money issues.
Federal prosecutors now want funds held in accounts at HSBC Bank turned over. There are several accounts involved, either in Fowler’s name or that of Global, but the total amount isn’t identified. Fowler is also to turn over any property or assets that can be traced to his perpetuated criminal acts.
Pretrial motions related to all of the allegations are to be presented to a judge by this Friday. After that, opposition to the motions will be allowed until March 13, and replies will then be provided no later than March 20. Fowler is expected to appear in court sometime in April.
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