US prosecutors seek a 7-year sentence and $740 million in forfeiture for an ex-NFL investor in crypto scam case
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- US prosecutors are seeking a seven-year jail sentence for an ex-NFL investor for his involvement in crypto-related bank fraud.
- Reginald Fowler, who owned 3% of the Minnesota Vikings, is on trial for helping crypto firms side-step money laundering rules.
- He is scheduled to be sentenced on Thursday.
US prosecutors are seeking a seven-year jail sentence for a former investor in the NFL team Minnesota Vikings for his involvement in helping cryptocurrency firms side-step money laundering rules.
Reginald Fowler, a 64-year-old based in Arizona, played a "critical role in a serious criminal enterprise" by helping Crypto Capital operate as a "shadow bank" for digital-asset platforms, the New York prosecutors alleged.
Fowler, who owned 3% of the Vikings football team, pled guilty to five charges including bank and wire fraud, conspiracy, and unlicensed money transmitting in April 2022. Now, along with the jail sentence, prosecutors are demanding Fowler give up $740 million, according to a Monday court document.
Fowler allegedly opened Global Trading Solutions, a firm that worked with Crypto Capital that exchanged cash and crypto. The court document alleged that he opened several bank accounts and falsely said they were used to manage real-estate investments, when in reality they were used to trade crypto without a license.
Fowler let the millions of dollars flow throughout the US financial system "through a series of lies" and the banks he lied to could have faced repercussions they didn't know about, prosecutors alleged.
"The recent turmoil in the U.S. banking system reflects the substantial economic risks to the banks. Banks like Silvergate and Signature knowingly took exposure to the cryptocurrency industry; the banks Fowler lied to were also exposed to the volatility of the industry but were unaware of that fact," the court document said.
Fowler is scheduled to be sentenced by a US District Judge in Manhattan on Thursday, per Bloomberg.