Teleco Sues Former Employee for $6.6M in Alleged Cryptocurrency Fraud

News | April 17, 2024 By:

On Monday, April 1, 2024, TELECO, Inc., William M. Rogers, and William “Billy” Michael Rogers II filed an amended verified complaint in the United States District Court for the District of South Carolina against Brett Mutolo.

The complaint alleges that Mutolo engaged in fraud and theft stemming from his work as an employee of TELECO and contractor for Rogers Family Investments, LLC. TELECO is a privately held telecommunications company based in Greenville, South Carolina, and the plaintiffs include its CEO and President.

It is claimed that Mutolo gained the plaintiffs’ trust over several months in 2021 by presenting himself as an expert in cryptocurrency investment and trading. In his role, he was responsible for managing the plaintiffs’ cryptocurrency holdings, including bitcoin. The complaint states that Mutolo showed fabricated screenshots appearing to confirm high returns on trades in order to gain access to the plaintiffs’ cryptocurrency wallets and passwords.

In early 2022, Mutolo was hired as a full-time asset manager by TELECO. The plaintiffs allege that he then established a “beta test fund” managed through the cryptocurrency exchange KuCoin, into which they invested over $1.6 million based on Mutolo’s representations of achieving strong returns.

However, when the plaintiffs attempted to withdraw their funds in late May, Mutolo claimed KuCoin imposed strict limits allowing only small daily withdrawals. He allegedly provided falsified updates showing the funds’ value growing. In June, Mutolo was granted access to additional wallets and investments.

The filing asserts that after becoming suspicious, the plaintiffs’ funds cannot be accounted for and Mutolo’s explanations for the missing capital lacked credibility. They are seeking over $6.6 million in compensatory damages for theft and fraud. The plaintiffs have moved for a preliminary injunction seeking to freeze Mutolo’s assets pending the legal proceedings.

Please contact BlockTribune for access to a copy of this filing.