US Authorities Arrest a Man for Running $1.8 Million Fraudulent Scheme

Thursday, 21/04/2022 | 05:25 GMT by Bilal Jafar
  • Chet Stojanovich has been arrested on charges of defrauding more than a dozen victims.
  • Stojanovich was running multiple companies.
Department of Justice

In a recent crackdown, the US Department of Justice announced that Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation, have arrested a man named Chet Stojanovich on charges of defrauding multiple investors.

According to the details shared by the US DOJ, Stojanovich promised investors to provide specialized crypto mining machines for better hash power. Additionally, he presented a lucrative scheme for better returns. Through misrepresentation, Stojanovich defrauded investors out of a total of more than $1.8 million. He was arrested on 20 April 2022 after crossing from Canada into the United States.

“A great deal of excitement and ‘buzz’ has been generated in recent years about the ‘new world’ of cryptocurrency mining. But, new financial frontiers can also generate fresh opportunities for old-fashioned fraud. Here, Chet Stojanovich is charged with using those time-worn fraud techniques on a new frontier,” Williams said.

The US Department of Justice has increased its efforts against rising financial scams in the region. In November last year, the authority charged 2 cybercriminals for their role in ransomware attacks.

Forex and Crypto Scams

Last year, the CFTC charged Thomas Plaut and his firms for $4.7 million in FX fraud. While FX-related fraudulent activities have decreased in the US during the past few years, international forex fraud has increased. As far as crypto is concerned, several fraudulent actors are still running illegal crypto businesses in the US, including misrepresented BTC mining schemes.

“As alleged, Mr Stojanovich induced his victims to invest in his fraudulent cryptocurrency mining schemes and caused them to incur losses approaching $2 million. Today's action should serve as an example of the FBI's commitment to rooting out financial fraud, as well as our focus on identifying and investigating emerging threats as they evolve,” FBI’s Assistant Director-in-Charge, Michael J. Driscoll, said.

In a recent crackdown, the US Department of Justice announced that Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation, have arrested a man named Chet Stojanovich on charges of defrauding multiple investors.

According to the details shared by the US DOJ, Stojanovich promised investors to provide specialized crypto mining machines for better hash power. Additionally, he presented a lucrative scheme for better returns. Through misrepresentation, Stojanovich defrauded investors out of a total of more than $1.8 million. He was arrested on 20 April 2022 after crossing from Canada into the United States.

“A great deal of excitement and ‘buzz’ has been generated in recent years about the ‘new world’ of cryptocurrency mining. But, new financial frontiers can also generate fresh opportunities for old-fashioned fraud. Here, Chet Stojanovich is charged with using those time-worn fraud techniques on a new frontier,” Williams said.

The US Department of Justice has increased its efforts against rising financial scams in the region. In November last year, the authority charged 2 cybercriminals for their role in ransomware attacks.

Forex and Crypto Scams

Last year, the CFTC charged Thomas Plaut and his firms for $4.7 million in FX fraud. While FX-related fraudulent activities have decreased in the US during the past few years, international forex fraud has increased. As far as crypto is concerned, several fraudulent actors are still running illegal crypto businesses in the US, including misrepresented BTC mining schemes.

“As alleged, Mr Stojanovich induced his victims to invest in his fraudulent cryptocurrency mining schemes and caused them to incur losses approaching $2 million. Today's action should serve as an example of the FBI's commitment to rooting out financial fraud, as well as our focus on identifying and investigating emerging threats as they evolve,” FBI’s Assistant Director-in-Charge, Michael J. Driscoll, said.

About the Author: Bilal Jafar
Bilal Jafar
  • 2440 Articles
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About the Author: Bilal Jafar
Bilal Jafar holds an MBA in Finance. In a professional career of more than 8 years, Jafar covered the evolution of FX, Cryptocurrencies, and Fintech. He started his career as a financial markets analyst and worked in different positions in the global media sector. Jafar writes about diverse topics within FX, Crypto, and the financial technology market.
  • 2440 Articles
  • 71 Followers

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