TLDR

73-year-old Randall V. Rule from Montana was found guilty of cryptocurrency money laundering conspiracy
Rule and co-defendant Gregory C. Nysewander laundered over $2.4 million from romance scams and other frauds
They converted fraud proceeds into cryptocurrency and sent them to domestic and foreign co-conspirators
The defendants misrepresented transactions to financial institutions and cryptocurrency exchanges
Rule faces up to 20 years for each money laundering charge and 5 years for conspiracy to violate the Bank Secrecy Act

A 73-year-old Montana man has been found guilty by a federal jury for his role in a cryptocurrency money laundering operation tied to romance scams and other fraudulent schemes.

Randall V. Rule, formerly of Kalispell, Montana, was convicted on all counts following a three-day trial before U.S. District Judge Jeremy D. Kernodle on February 26, 2025. The trial took place in the Eastern District of Texas.

Rule was charged alongside Gregory C. Nysewander, formerly of Irmo, South Carolina. The pair were named in a federal indictment returned by a grand jury on November 16, 2022.

The indictment charged both men with money laundering conspiracy, money laundering, and conspiracy to violate the Bank Secrecy Act. According to court documents, they worked together to launder proceeds from various fraud schemes.

Prosecutors presented evidence that Rule and Nysewander converted funds from romance scams, business email compromises, and real estate scams into cryptocurrency. They then transferred these digital assets to accounts controlled by domestic and foreign co-conspirators.

Romance scams, sometimes called “pig butchering,” involve fraudsters who pretend to form romantic relationships with victims. These scammers build trust over time before exploiting their victims financially.

Business email compromises typically involve hackers gaining access to company email accounts. They then use these accounts to authorize fraudulent wire transfers or trick employees into sending money.

The defendants employed various tactics to avoid detection by financial institutions. They provided specific instructions to co-conspirators and victims to disguise the nature of transactions.

Wire transfers were often labeled as “loan repayments” or “advertising” to hide their true purpose. The defendants also made false statements when opening accounts and communicating with financial institutions and cryptocurrency exchanges.

$2.4 Million Stolen

Throughout the course of the conspiracy, Rule, Nysewander, and their co-conspirators laundered more than $2.4 million through these illicit means. The money came from victims of various scams who had their life savings stolen.

“We will not stand by as our citizens are victimized by financial crimes and their life savings are stolen,” said Acting U.S. Attorney Abe McGlothin, Jr. in a statement following the verdict. “We will aggressively pursue cases against scammers and against those who facilitate their crimes by laundering the criminal proceeds.”

The U.S. Secret Service led the investigation alongside the U.S. Postal Inspection Service. Resident Agent in Charge Brad Schley praised the prosecution team for their efforts to protect the financial system of the United States.

“This case culminates the work of a great team of investigators and prosecutors that works tirelessly to protect the financial infrastructure of the United States,” Schley stated in a press release.

The prosecution was handled by Assistant U.S. Attorneys D. Ryan Locker, Dustin Farahnak, and Nathaniel C. Kummerfeld. The case was part of Operation Crypto Runner, an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.

At sentencing, Rule faces up to 20 years in federal prison on each money laundering charge. He also faces up to 5 years for the conspiracy to violate the Bank Secrecy Act charge.

The court will determine the final sentence based on advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled following the completion of a presentence investigation by the U.S. Probation Office.

The post 73-Year-Old Montana Man Convicted in $2.4 Million Crypto Money Laundering Scheme appeared first on CoinCentral.

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Filed under: News - @ February 27, 2025 8:22 pm