The DOJ has filed David R. Pike’s superseding indictment, detailing four instances of fraud.
Last November news of David Pike’s arrest in August 2018 emerged.
The DOJ put off filing Pike’s indictment, owing to the possibility of additional charges.
Not sure if Pike’s initial indictment was ever filed, but the latest is a February 6th filed superseding indictment.
As per the indictment, Pike’s involvement in OneCoin saw him commit bank fraud from 2016 to 2018.
David Pike … willfully and knowingly, would and did execute a scheme and artifice to defraud a financial institution … and to obtain moneys, funds, credits, assets, securities, and other property … by means of fraudulent pretenses, representations, and promises.
Pike worked with Mark Scott to launder funds for OneCoin. His indictment references a third unnamed co-conspirator.
In or around June 2016, a co-conspirator not named herein misrepresented material facts to an FDIC-insured bank in Manhattan, New York and thereby caused the Manhattan Bank to transfer approximately $5 million into a purported investment funds operated by David R. Pike and others.
One possibility is Gilbert Armenta, who we know through Konstantin Ignatov’s testimony in Mark Scott’s trial, worked as an informant for the FBI.
In contrast to Mark Scott’s recently filed acquittal dumbass defense, an email exchange between Pike and Scott reveals a calculated effort to deceive.
On or about August 9, 2016, Pike sent an email to co-conspirator Mark S. Scott, stating,
“They are going to make a move to soon and send up flags that will disrupt the delicate process of attempting to scrub Ruja (Ignatova) i[f] they keep this up.
You are playing a very delicate game quite well, I am impressed.”
In his acquittal motion, Scott claims he had no idea OneCoin was fraudulent and played no part in deceiving banks.
Similarly, David Pike played dumb during a 2018 meeting with federal law enforcement agents.
On or about December 4, 2018, Pike made false statements during a meeting with federal law enforcement agents.
Pike falsely stated … that Pike was not aware that approximately $400 million transferred into purported private equity funds that Pike helped to manage was derived from an international multi-level marketing scheme known as “OneCoin” or belonged to Ruja Ignatova, the leader of that scheme…
…In truth and in fact, Pike was aware that the money belonged to Ruja Ignatova and that it was derived from (OneCoin).
Pike’s indictment lists one count of conspiracy to commit bank fraud.
Forfeiture of ill-gotten gains is also sought, but no specific amount is specified.
In the event Pike has laundered whatever he was paid by OneCoin, the DOJ will substitute any assets they can find.
On February 6th Pike filed a waiver of indictment. In lieu of prosecution by indictment, Pike has consented to proceeding by information.
As I understand it, this negates the need for a Grand Jury. Instead whether Pike has a criminal case to answer to will be decided by a Judge.
Given the scope of the OneCoin case, in my opinion it’s highly unlikely a Judge is going to let Pike walk free.
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.