A Montana man has been found guilty of conspiracy to launder
over $2.4 million through cryptocurrency, the U.S. Attorney’s Office for the
Eastern District of Texas announced Thursday.
Randall V. Rule, 73, formerly of Kalispell, Montana, was
convicted on all counts following a three-day trial before U.S. District Judge
Jeremy D. Kernodle on Feb. 26.
He was charged alongside Gregory C. Nysewander, formerly of
Irmo, South Carolina, in a 2022 federal indictment.
Prosecutors said Rule and Nysewander helped convert funds
from scams — including romance fraud, business email compromises, and real
estate scams — into cryptocurrency, which was then transferred to accounts
controlled by foreign and domestic co-conspirators.
Romance scams involve fraudsters befriending victims under
the pretence of a potential love interest. These scammers pretend to form
personal connections to gain victims’ trust and then exploit them financially.
Scammers also use fake websites to trick victims into
providing personal information or sending funds. Many of these sites mimic
legitimate companies but have minor differences in their URLs.
To evade detection, Rule and Nysewander allegedly
misrepresented transaction details and misled financial institutions and
cryptocurrency exchanges.
“We will aggressively pursue cases against scammers and
against those who facilitate their crimes by laundering the criminal proceeds,”
said Acting U.S. Attorney Abe McGlothin, Jr.
The U.S. Secret Service, which investigated the case,
credited the prosecution team for protecting the country’s financial system.
Rule faces up to 20 years in prison for each money
laundering charge and up to five years for conspiracy to violate the Bank
Secrecy Act. His sentencing date will be set following an investigation.
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