OneCoin money launderer Mark Scott has been released from prison.
The decision was made on the basis of Scott’s current medical condition and concerns over the coronavirus pandemic.
Scott’s previous bail conditions saw him held at Miami FDC. Following the March 30th order, Scott (right) will be subject to twenty-four hour home incarceration at his Coral Gables residence.
While locked down at home, Scott will be subject to location monitoring. He is
purchase or secure an iPhone with FaceTime capabilities for remote/virtual monitoring by Pretrial Services.
PreTrial Services will also be visiting Scott at home from time to time.
Scott is only permitted to leave the house “necessary medical services”.
Additionally, Scott and his wife are required to surrender current travel documents (namely their passports). They are also prohibited from applying for any new documents.
On March 30th the DOJ requested an additional bail condition be added;
In light of the ongoing economic danger that Scott poses to the community, the Government requests that the Court add an additional condition that Scott be required to obtain the approval of Pretrial Services before entering into any loan agreements or opening any other new lines of credit.
Scott’s attorney filed a response the same day advising they did not oppose the DOJ’s request.
To secure Scott’s compliance, a $2.5 million personal recognizance bond against the Coral Gables residence has been accepted.
The property was paid off with just over $1 million in stolen OneCoin investor funds. It is also already subject to forfeiture.
Considering these points, I found Scott being allowed to put the property up to secure his release an odd decision.
In their response to Scott’s “let me out of prison” motion, the DOJ thought so too.
In essence, Scott is asking the Court that to allow him to be released on a bond that is secured by a property that was paid for in substantial part with OneCoin victim proceeds.
This would be completely inappropriate and would give Scott no real incentive not to flee, given that the only resulting harm if he did flee would be the forfeiture of a property that was paid for by fraud scheme proceeds and is therefore subject to forfeiture as part of his sentence in this case.
The DOJ also argued Scott was still very much a flight risk.
Scott, who faces a Guidelines sentence of 50 years’ imprisonment, is a dual German citizen.
If Scott flees to Germany to avoid sentencing in this case, Scott cannot be extradited.
Scott’s previous bail condition violations were also brought up;
While released on bail, in or about July 2019, Scott sold a 2016 Porsche (the “2016 Porsche”) for $250,000.
Scott did so with full knowledge that he had purchased the 2016 Porsche with OneCoin victim money and that the 2016 Porsche was subject to both a seizure warrant— which was produced to the defendant in discovery in October 2018—and a Forfeiture Bill of Particulars (the “Forfeiture BOP”) —which was filed with the Court and served on the defendant in February 2019.
While released on bail Scott also used $300,000 in OneCoin victim proceeds that were subject to a restraining order to pay for renovations to his (Massachusetts) property.
Furthermore, Scott mortgaged the (Massachusetts) Property—which he had also purchased with OneCoin proceeds, and which was also subject to the Forfeiture BOP—to a creditor, specifically, a contracting business performing work on the (Massachusetts) Property.
Scott has also lost the trust of Marieta Halle, who had previously put up $750,000 as a security for Scott’s initial bond.
Scott is alleged to have defrauded Halle out of another $500,000. To secure the $500,000 loan, Scott offered to mortgage yet another property, also purchased with OneCoin funds and subject to forfeiture.
Scott was supposed to repay Halle back by February 29th but has failed to do so.
The court appears to have overruled these objections based on Scott’s ‘alleged vulnerability based on certain pre-existing health conditions‘.
(Scott) has provided limited support for his claim that his health condition renders him especially vulnerable to COVID-19.
Specifically, Scott relies on a vague one-page doctor’s letter stating that Scott “has hypertension and was in the process of ongoing a cardiac workup.
He is considered at high risk for COVID19 complications, and therefore is considered a high risk patient,” and a prior letter from the same doctor recommending that Scott not travel to New York in light of his history of hypertension and obstructed sleep apnea.
Looking forward, Scott’s changed bail conditions are active for up to sixty days. Whether he actually adheres to his bail conditions this time around remains to be seen.
Scott remains scheduled to be sentenced on May 26th.
Update 25th April 2020 – On April 21st Scott’s attorney wrote the court requesting a sentencing hearing extension.
Mr. Scott respectfully requests an extension of time for … the sentencing date, due to the ongoing COVID-19 pandemic and the need for Mr. Scott to undergo further medical testing.
The DOJ did not oppose the motion.
On April 24th the court granted Scott’s extension request, rescheduling his hearing for July 14th.
Update 18th May 2020 – On May 11th the court clerk was directed to refund Marrietta Halle the $750,000 she put up for Scott’s bond.
As I understand it Scott is now $750,000 short on his bond. Not sure what that means going forward.
Update 30th May 2020 – A May 27th order has extended Scotts’ release on bail until July 14th.
Update 19th June 2020 – A joint-proposed schedule from Scott and the DOJ has seen his sentencing pushed back to October 9th.
Scott is to remain out on bail until the hearing.