A Swedish man accused of running a business that encouraged people to invest using cryptocurrencies such as bitcoin has been extradited from Thailand to the U.S. to face criminal charges.
The man, Roger Nils-Jonas Karlsson, 45, was initially arrested in Thailand in June for alleged securities fraud, wire fraud and money laundering, according to an announcement from the U.S. Justice Department on Monday. Prosecutors allege Karlsson defrauded more than 3,500 victims for over $11 million in cryptocurrency fraud.
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws
Fraud! Fraud!! Fraud!!!
Roger Nils-Jonas Karlsson allegedly used two websites, to make multiple false communications to potential investors, per the department. Karlsson also falsely represented that Eastern Metal Securities was working with the U.S. Securities and Exchange Commission (SEC) to prepare the way for a payout.
He is also accused of transferring victims’ funds to his personal bank accounts, which now appear to be tied up in real estate in Thailand.
Karlsson made his initial federal court appearance Monday before U.S. Magistrate Judge Sallie Kim, who ordered Karlsson detained. The next hearing is scheduled for Friday, Nov. 22.
If convicted, Roger Nils-Jonas faces a maximum sentence of 20 years in prison and a maximum $250,000 fine for the wire fraud and securities fraud charges, and 20 years in prison and a $500,000 maximum fine for the money laundering charge, per the announcement.
Mail fraud and wire fraud are federal crimes in the United States that involve mailing or electronically transmitting something associated with fraud. Jurisdiction is claimed by the federal government if the illegal activity crosses interstate or international borders