Fraud Suspect Filippo Cardone Reaches Plea Agreement in Crypto Scheme Case
On Tuesday, August 6, 2024, the United States government and Filippo Cardone finalized a plea agreement in federal court regarding charges of wire fraud.
Cardone had been indicted on one count of wire fraud for his role in a cryptocurrency investment scheme that took place from May 2018 to November 2019. According to the agreement, Cardone falsely represented to victims that he would exchange cash for bitcoin, but never provided any bitcoin after receiving hundreds of thousands of dollars in wire transfers.
The plea agreement stipulates that Cardone will plead guilty to the one count of wire fraud charged in the indictment. This charge carries a maximum penalty of 20 years in prison, a $250,000 fine, and 3 years of supervised release. In exchange for Cardone’s guilty plea, the government agreed not to bring any additional fraud charges related to his conduct.
The agreement lays out the elements required to prove the wire fraud charge, including that Cardone knowingly participated in a scheme to defraud in order to deprive victims of money or property through material misrepresentations. It is also noted that at least $723,500 was obtained through wire transfers from victims who believed they were purchasing bitcoin.
Specifically, the agreement details four wire transfers directly connected to Cardone’s scheme. This includes a $94,000 transfer from a victim in Canada routed through an individual in Florida in May 2018. Another transfer of $45,000 from a different victim passed through Florida in November 2018. Direct payments of $77,500 and $500,000 were also received by Cardone and associates.
The plea agreement estimates Cardone’s sentencing guidelines and includes recommendations for the court’s consideration. The government recommends a two-level reduction for acceptance of responsibility. Factors such as an intended loss amount between $550,000 to $1.5 million are also specified. However, the agreement clarifies that the court has discretion in determining the final sentence.
While restitution to victims is mandatory, the specifics will be decided by the court. An agreed amount of $723,500 subject to forfeiture is included. The plea deal also outlines waivers of certain appeal and collateral rights.
Please contact BlockTribune for access to a copy of this filing.
