U.S. Government Files Sentencing Memorandum for Chirag Tomar in Multi-Million-Dollar Crypto Fraud Case
On Tuesday, October 8, 2024, the United States government filed a sentencing memorandum in the case of Chirag Tomar, who was charged with wire fraud conspiracy and money laundering conspiracy. The memorandum was submitted by Dena J. King, the United States Attorney for the Western District of North Carolina, to the U.S. District Court for the Western District of North Carolina.
Tomar, a citizen of India, was arrested in December 2023 upon arriving at Hartsfield-Jackson Airport in Atlanta, Georgia, following a complaint that alleged his involvement in a sophisticated multi-million-dollar cryptocurrency fraud scheme. The scheme reportedly exploited a spoofed cryptocurrency exchange website to gain access to victims’ cryptocurrency holdings.
In May 2024, Tomar pleaded guilty to wire fraud conspiracy under 18 U.S.C. § 1349, acknowledging his role in the fraudulent activities that targeted over 700 victims across the United States and other countries. The government estimates that the total losses from the scheme exceed $20 million.
The sentencing memorandum outlines the government’s recommendations for Tomar’s sentence. The U.S. Attorney’s Office suggests that the court establish a Total Offense Level of 32, which would be determined before considering any government motions. The memorandum requests that the court apply sentencing enhancements detailed in the Presentence Investigation Report (PSR) and reject Tomar’s objections to the PSR.
The PSR, filed by the United States Probation Office (USPO), indicated significant enhancements based on the scale and impact of Tomar’s fraudulent activities. Specifically, the PSR applied a 20-level increase for losses exceeding $9.5 million, a six-level increase for causing substantial financial hardship to more than 25 victims, and a two-level increase for committing a substantial portion of the crime from outside the United States. The PSR concluded that Tomar’s total offense level, after adjustments, would indeed be 32.
The factual background provided in the memorandum details how Tomar and his co-conspirators orchestrated the fraud beginning in June 2021. They created a counterfeit website resembling the legitimate Coinbase Pro cryptocurrency exchange to mislead victims into entering their login credentials. Victims who attempted to log in were redirected to this fraudulent site, where they were prompted to provide sensitive information under various pretexts.
Once the victims fell prey to the scheme, Tomar and his associates gained unauthorized access to their Coinbase accounts and transferred their cryptocurrency holdings to wallets controlled by the defendants. The memorandum states that Tomar utilized the stolen funds to support a lavish lifestyle, including the purchase of luxury cars and watches, and took extravagant trips abroad.
The government’s memorandum further asserts that Tomar’s actions caused substantial financial hardship to numerous victims. Evidence submitted includes victim impact statements indicating severe financial losses, with some victims reporting changes to their living situations and employment due to the financial strain caused by the fraud.
In addressing Tomar’s sentencing, the memorandum emphasizes the need for a sentence that reflects the seriousness of the offense and promotes respect for the law. The government argues that the recommended sentence should also serve as a deterrent against similar cybercrimes, which are challenging to investigate and combat, especially when perpetrators operate from abroad.
The memorandum contests Tomar’s claims for a reduction in his offense level, arguing that he does not qualify as a minimal or minor participant in the conspiracy. The government maintains that Tomar was actively involved in executing the fraud, having directly accessed victim accounts and facilitated the theft of cryptocurrency.
As part of the sentencing process, the court is expected to consider the factors outlined in 18 U.S.C. § 3553(a), which include the nature and circumstances of the offense, the history and characteristics of the defendant, and the need to avoid unwarranted sentencing disparities.
The government concludes its memorandum by requesting that the court impose a sentence at the low end of the applicable advisory Guidelines range, asserting that such a sentence would be sufficient but not greater than necessary to fulfill the objectives of federal sentencing laws.
Please contact BlockTribune for access to a copy of this filing.
