Emerson Pires, Flavio Mendes Goncalves and Joshua David Nicholas have been indicted.
Felony expenses filed towards the trio pertain to the EmpiresX Ponzi scheme.
EmpiresX was a typical MLM crypto buying and selling bot Ponzi, launched in 2020.
As per an indictment returned by a Grand Jury on June thirtieth;
Emerson Pires and Flavio Mendes Goncalves aggressively marketed EmpiresX to potential buyers as a profitable funding alternative.
Pires, Goncalves and Joshua David Nicholas falsely and fraudulently touted EmpiresX’s purported funding platform involving buying and selling bots and personal funding as a easy, secure, and versatile alternative to speculate cryptocurrency and fiat forex.
Pires, Goncalves and Nicholas provided and offered the EX BOT as a sequence of transactions or schemes as a result of they promoted the EX BOT as an funding of cash into a standard enterprise with different buyers, with the cheap expectation of earnings from the efforts of EmpiresX.
The EX BOT subsequently certified as a “safety” underneath the foundations and laws governing the supply and sale of securities in the USA and required registration with the SEC.
Regardless of representations on the contrary, Pires, Goncalves and Nicholas by no means registered, nor took steps to register, EmpiresX’s funding program involving the EX Bot as an providing and sale of securities with the SEC, nor did they’ve a legitimate exemption from this registration requirement.
To disguise and conceal buyers’ funds, and the truth that EmpiresX was not independently producing significant income via the EX BOT, Pires and Goncalves laundered buyers’ funds generated in the USA and elsewhere via EmpiresX’s cluster of cryptocurrency wallets, International Cryptocurrency Trade 1, and elsewhere.
In whole, EmpiresX frauduelnt obtained roughly $100 million from sufferer buyers.
Pires, Goncalves and Nicholas additionally diverted buyers’ funds to cowl private expenditures, together with unique automobiles, clothes from high-end retailers, and legal professional’s charges.
The indictment expenses Pires, Goncalves and Nicholas with
- one depend of conspiracy to commit wire fraud;
- one depend of conspiracy to commit securities fraud; and
- one depend of conspiracy to commit worldwide cash laundering (Pires and Goncalves).
The DOJ is in search of forfeiture of ill-gotten positive aspects and convictions.
If convicted;
- Emerson Pires and Flavio Goncalves are going through 45 years in jail and a wonderful of as much as twice what he stole
- Joshua Nicholas is going through 25 years in jail and a wonderful of as much as twice what he stole
The day after the EmpiresX indictment was filed a sealed submitting was made on July 1st.
07/01/2022
SYSTEM ENTRY – Docket Entry 2 restricted/sealed till additional discover.
I imagine this may pertain to arrest warrants.
Upon studying they have been being investigated by US authorities, Pires and Goncalves, each Brazilian residents, fled to Brazil. Brazil doesn’t extradite its residents.
Joshua David Nicholas is a US citizen and resident of Florida.
Pending updates to the case docket, the present standing of all three EmpiresX defendants is unknown.
Pires, Goncalves and Nicholas have additionally been individually sued by the SEC and CFTC on associated expenses.