US authorities have arrested a second OneCoin money launderer, David R. Pike.
Pike worked with convicted OneCoin money launderer Mark S. Scott. He was apprehended after lying to federal agents about laundered OneCoin money.
Last December David Pike attended a meeting with FBI, IRS and DOJ.
During the meeting Pike was queried on $400 million Scott laundered for OneCoin, through “private equity funds that Pike helped to manage”.
When asked whether he was aware the funds were tied to OneCoin and/or belonged to Ruja Ignatova, Pike denied having any knowledge.
The DOJ assert this was a lie.
In truth and fact, Pike was aware that the money belonged to Ruja Ignatova and that it was derived from the OneCoin multi-level marketing scheme.
An FBI agent identifies Pike as COO of the infamous Fenero Funds, a series of shell companies Mark Scott set up to launder OneCoin investor funds through.
Scott, who is facing fifty years in prison for his role in OneCoin, was CEO of Fenero Funds.
According to the FBI agent, on the day of Scott’s arrest (September 5th, 2018), Pike confessed he
knew that the money transferred into the Fenero Funds belonged to Ruja Ignatova, the principal leader of the OneCoin fraud scheme.
PIKE further admitted that all of the money was to be returned to Ignatova at some point.
Emails collected as evidence further support Pike knew the money he and Scott were laundering was tied to OneCoin and Ignatova.
As referenced above, in a subsequent December meeting, Pike then denied any knowledge of the source of the laundered funds.
According to evidence collected by US authorities during the course of their investigation, Pike started working with Scott on or around March 2016.
Pike’s efforts to launder OneCoin funds began with his appointment as a director of MSS International Consultants, a shell company Scott set up for Ruja Ignatova.
Through MSSI BVI, DAVID R. PIKE, the defendant, and Mark Scott operated a series of purported private equity investment funds, including Fenero Equity Investments L.P., Fenero Equity Investments II, L.P., Fenero Financial Switzerland L.P., and Fenero Equity Investments (Cayman) I, L.P., (collectively, the “Fenero Funds”).
PIKE and Scott established bank accounts at banks in the Cayman Islands for each of the Fenero Funds.
In his first interview following Scott’s arrest, Pike revealed he
and Scott were responsible for managing approximately €450 million in the Fenero Funds.
Ruja Ignatova was the ultimate beneficial owner of the money transferred into the Fenero Funds.
In other words, all of the money belonged to Ignatova.
Following closure of the Fenero Funds, Scott returned the €450 million laundered to Ignatova. She took the money and disappeared in October, 2017.
In contrast to the $50 million Scott received for laundering OneCoin funds, Pike was paid just $1.2 million.
He would tell US authorities at the December meeting that he only received $3500 a month.
As lying to federal agents is a crime, a warrant was put out. Pike was arrested in Florida on August 30th.
On September 12th Pike was released on a $500,000 personal recognizance bond, plus strict travel restrictions.
Thus far the DOJ has requested two continuances with respect to filing an indictment against Pike.
The second was made on November 13th and requested an additional 30 days continuance.
The stated reason for the request was ongoing discussions regarding ‘charges that might be brought in this case’.
Later the same day the DOJ’s second continuance request was granted, pushing back Pike’s indictment deadline to December 13th.
Update 8th February 2020 – On February 6th the DOJ finally filed David Pike’s superseding indictment.
Update 20th October 2021 – Pike’s plea control date was finally held on October 19th.
As per a filed Consent Preliminary Order of Forfeiture, Pike will surrender $2.09 million as part of his judgment.
Update 2nd March 2022 – On March 1st David Pike was sentenced to two years probation.