Category: Security

Source: US FBI

Source: US FBI

CLEVELAND, OH—The FBI Cleveland Field Office is seeking to identify potential victims of Mark Dente doing business as AEM Services LLC. AEM Services LLC, purported to manage a portfolio of real estate investments. Dente, doing business as AEM Services LLC, sold investors securities in this portfolio in the form of promissory notes and LLC interests. The investments were issued from various entities owned or controlled by Mark Dente, originating in the Summit County and/or Akron, Ohio area including:

• The AEM Services LLC
• AEM Funding
• AEM Wholesale LLC
• AEM Investments LLC
• AEM Capital Fund

The division mailed letters via U.S. Mail over the past week from its Victim Services Division to presumed victims and seeks to find additional victims across Ohio and the United States. The FBI wishes to identify those not only victimized by Mark Dente but also other employees of AEM Services LLC (including but not limited to Jason Ramus, Brian Buckham, or Mark Gathagan).

The FBI encourages the public to share any information relevant to this investigation by completing the case questionnaire https://forms.fbi.gov/aemfraudvictims/view and also asks the public if they know of any others possibly victimized by AEM Services LLC, to encourage them to also complete the form as everyone will have an individual victim and pin identification number.

The FBI is legally mandated to identify victims of federal crimes it investigates. Victims may be eligible for certain services, restitution, and rights under federal and/or state law. Responses are voluntary but may be useful in the federal investigation and to identify you as a potential victim. Based on the responses provided, respondents may be contacted by the FBI and asked to provide additional information. All identities of victims will be kept confidential. It is important to note that the FBI does not provide updates on investigations and once the respondent has submitted information, they may not hear back from the FBI.

If people have questions or comments about the case, they are encouraged to email: AEMVictims@fbi.gov. Inquiries about the status of the case will not be addressed; if there are questions about a letter they received, they can call FBI Youngstown Victim Services at (330) 965-2920 and reference file number 318B-CV-3606224.

Source: US FBI

COLUMBUS, Ohio – A leader in a case with 23 defendants involved in narcotics and human trafficking conspiracies pleaded guilty in federal court here today to drug, gun, human trafficking, and money laundering crimes.

From 2008 until June 2022, Cordell Washington, 37, of Pickerington, ran a large-scale drug trafficking organization in Columbus with co-defendant Patrick Saultz. Their operations also included sex trafficking, labor trafficking, fraud and money laundering.

A multi-agency law enforcement task force initially announced the case in July 2022 after a federal grand jury indicted 11 defendants for distributing bulk amounts of fentanyl, cocaine and crack cocaine within 1,000 feet of a Columbus elementary school. In October 2022, the government added 12 defendants and 28 new charges. 

Court documents detail that the drug trafficking organization brought large quantities of fentanyl, heroin, cocaine, crack cocaine, methamphetamine, oxycodone, alprazolam and marijuana into Columbus. These drugs were sold or used to coerce individuals into sexual activity for some members of the drug ring and their profit.

It is alleged that Saultz began distributing heroin, cocaine and crack cocaine from his residences on Vida Place and South Hague Street in Columbus as early as 2008. The drug trafficking organization sold drugs out of more than 20 Columbus residences to customers and distributed larger amounts to regional drug traffickers who then trafficked those narcotics to places such as West Virginia and the Northern District of Ohio.

Most of the alleged drug dealing took place within 1000 feet of Burroughs Elementary School in Columbus at a residence on South Burgess. For example, one of Washington and Saultz’s numerous subordinates sold approximately $18,000 worth of narcotics per day from the location on South Burgess.

The case also involves the overdose death of at least one individual and the violent death of a second victim.

As part of his plea, Washington admitted to labor trafficking male drug addicts. The defendant provided the men with their drug of choice after the men completed construction or cleaning projects at residences owned by the drug trafficking organization. The men were recruited by Washington and some completed the work for him under serious threat of harm.

Washington would provide the addicts with advances on small amounts of drugs so they were well enough to perform physical labor. If Washington was not pleased with their work product, he would not complete the final drug payment and would threaten violence against them.

Washington used numerous methods to launder the group’s drug trafficking proceeds, including establishing front businesses that purported to be rental, repair and construction companies.

Washington pleaded guilty to conspiring to distribute and possessing with intent to distribute controlled substances within 1,000 feet of an elementary school, possessing a firearm in furtherance of a drug trafficking crime, labor trafficking and concealment money laundering. He faces a mandatory minimum of at least 15 years and up to life in prison.

As part of this case, local, state, and federal law enforcement officers have executed more than 20 search warrants at various locations throughout Central Ohio and seized more than $1.7 million in alleged drug proceeds. For example, while executing a search warrant at Car-Go storage units, law enforcement officials discovered approximately one million in bulk United States currency. Searches of additional residences yielded 47 firearms, diamonds, Rolex watches and additional bulk amounts of cash.

As of today, 21 of the 23 defendants have pleaded guilty. One defendant, Carmella Brooks, has been sentenced and received a term of imprisonment of five years.

U.S. Attorney Kenneth L. Parker commended the investigation coordinated by Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission Central Ohio Human Trafficking Task Force, which includes Columbus Division of Police Chief Elaine Bryant; Shawn Gibson, Acting Special Agent in Charge, Homeland Security Investigations; and Orville O. Greene, Special Agent in Charge, U.S. Drug Enforcement Administration. Other agencies that have assisted the task force with the investigation include the Franklin County Sheriff’s Office, HIDTA Task Force, IRS-Criminal Investigation, FBI, Ohio Bureau of Criminal Investigations (BCI), Ohio National Guard Counter Drug Task Force, Pickerington Police Department, New Albany Police Department, and the Fairfield County Sheriff’s Office SWAT Team.

Assistant United States Attorneys Timothy Prichard and Emily Czerniejewski are representing the United States in this case.

This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. More information about OCDETF can be found at https://www.justice.gov/OCDETF.

# # #

Source: US FBI

COLUMBUS, Ohio – A former Pike County deputy was sentenced in federal court here today to 100 months in prison for committing civil rights violations while employed as a law enforcement officer.

In August 2023, Jeremy C. Mooney, 49, was convicted by a federal jury of two counts of violating a victim’s constitutional rights by pepper spraying and punching the victim in the head, while the victim was in the custody of the Pike County Sheriff’s Office and posed no threat to himself or others. The jury found that Mooney’s offenses involved the use of a dangerous weapon and resulted in bodily injury.

“This defendant is being sentenced for the violent assault of an inmate who was confined to a restraint chair and unable to protect himself or escape from the abuse,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “All people in our country have a right to be free from excessive force by law enforcement officers. The Justice Department will continue to aggressively prosecute any law enforcement officer who willfully violates the civil rights of the people they are sworn to protect and serve.”

“Communities trust in law enforcement officers to uphold the rule of law and, as public servants, they must honor that responsibility, not deprive individuals of their civil rights,” said U.S. Attorney Kenneth L. Parker. “Law enforcement officials who abuse their powers like Mooney did will be held accountable.”

According to court documents and trial testimony, on Nov. 18, 2019, Mooney transported the victim from the jail to the Pike County Sheriff’s Office headquarters, where he placed the victim in a restraint chair. The restraint chair secured the victim’s hands behind his back and prevented him from being able to move most of his body. For more than an hour, Mooney unlawfully used force against the victim on several occasions.

Mooney dragged the victim — who was in the restraint chair — outside and pepper sprayed him directly in the face. The victim writhed in pain and tipped the chair back off the curb, landing on his back. Mooney then stood over the victim and deployed the pepper spray directly into the victim’s face a second time. Mooney brought the victim back inside the building and walked away. Over the course of several minutes, Mooney returned to that part of the building, where the victim was still handcuffed and secured in the restraint chair and punched the victim in the head 11 times. Mooney punched the victim with enough force to break his own hand.

A former Pike County Sheriff’s Office supervisor, William Stansberry Jr., 47, of Chillicothe, Ohio, was also charged. Stansberry violated the victim’s constitutional rights by willfully failing to intervene to prevent Mooney’s conduct. He pleaded guilty in July 2023 to deprivation of civil rights under color of law and was sentenced on March 5 to six months in prison. Stansberry was also ordered to serve three years of supervised release, with the first six months to be served under home detention.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Kristen Clarke, Assistant Attorney General of the Department of Justice’s Civil Rights Division; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate and Trial Attorney Cameron A. Bell from the Justice Department’s Civil Rights Division are representing the United States in this case.

# # #

Source: US FBI

COLUMBUS, Ohio – A Canal Winchester man was sentenced in U.S. District Court today to 60 months in prison for making interstate threats to local law enforcement, court officials, businesses and schools.

Yousif Mubarak, 27, was convicted following a jury trial in August 2023 of seven counts of making interstate threats.

“Threats are more than mere words, they have significant consequences, as illustrated by the sentence imposed today,” said U.S. Attorney Kenneth L. Parker.

According to court documents and trial testimony, in September 2021, Mubarak made at least 87 threatening phone calls from the state of Washington, where he resided for a short time, to a Franklin County Municipal Court Judge who previously presided over his court case.

Mubarak told the Judge that he would find her, that he had private investigators following her and that she should watch for cars following her. Mubarak said, “I will find you even if that means I die,” and threatened to kill the Judge himself. In many of the messages, Mubarak identified himself by name and left his callback number.

Beginning on Sept. 12, 2021, and continuing until the early morning hours of Sept. 13, 2021, Mubarak also placed numerous threatening calls to businesses and schools in the Canal Winchester and Pickerington areas.

He called to make threats to employees at the Brew Dog, Home Depot and Best Western businesses in Canal Winchester.

On Sept. 12, 2021, at about 10pm, officers and agents with the Fairfield County Sheriff’s Office, Columbus Division of Police and FBI visited the last known address of Mubarak in Canal Winchester. Mubarak observed the officers in his Ring doorbell camera and taunted the officers throughout the interaction.

Twenty minutes later, Mubarak called a dispatcher in Fairfield County and told her, in part, “you can die” and “she would get two bullets in the head.” The defendant called the Franklin County Sheriff’s Office more than 100 times in a 12-hour span.

Around 7am on the morning of Sept. 13, 2021, Mubarak called in a bomb threat to Canal Winchester Middle School. He told a school employee: “I have placed several bombs in your building” and “I would get your women and children out now.”

Approximately 20 minutes later, Mubarak called Pickerington North High School and said there were two suicide bombers inside the school.

Mubarak was charged federally and arrested on Sept. 22, 2021. A federal grand jury indicted him in November 2021 and that indictment was superseded in June 2022.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Fairfield County Sheriff Alex Lape; and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Jessica W. Knight and Jennifer M. Rausch are representing the United States in this case.

# # #

Source: US FBI

COLUMBUS, Ohio – A Columbus man pleaded guilty in U.S. District Court today to a drug crime and admitted to his role in the killing of a local man. The defendant is one of nearly two dozen individuals charged in a case involving a large-scale drug and human trafficking ring.

Dustin A. Speakman, 34, pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances within 1,000 of an elementary school. As part of his plea, Speakman admitted to his role in the death of one victim which occurred during the time he was operating a drug distribution house. His plea includes a sentencing recommendation of 20 to 23 years in prison.

Speakman, who is also known as “Dawg,” is one of 23 defendants charged in a narcotics and human trafficking case that involves at least two deaths.

According to court documents, from 2008 until June 2022, lead defendants Patrick Saultz and Cordell Washington ran a large-scale drug trafficking organization in Columbus that included sex trafficking, labor trafficking, and money laundering.

Court documents detail that the drug trafficking organization brought large quantities of fentanyl, heroin, cocaine, crack cocaine, methamphetamine, oxycodone, alprazolam and marijuana into Columbus. These drugs were sold or used to coerce individuals into sexual activity for some members of the drug ring and their profit.

Speakman joined the drug trafficking organization after being released from jail in 2022, where he was housed with Saultz. Speakman was a mid-level drug distributor for the group out of residences on South Ogden and South Warren.

As part of his guilty plea, Speakman admitted to severely beating one of his drug runners in May 2022 and then providing him with free drugs to make up for the attack. Witnesses said the male was beaten by Speakman and then given cocaine and fentanyl as compensation. Shortly after, the victim began to seize and foam at the mouth and did not respond to Narcan. The victim was driven to an alley near Grant Hospital where he was found unconscious by Columbus Fire Department personnel with severe trauma to the face and head. His cause of death was ultimately determined to be blunt force trauma caused by Speakman.

“Any loss of life is significant,” said U.S. Attorney Kenneth L. Parker. “Our office will continue to work to hold perpetrators of illegal drug trafficking accountable and secure justice for victims of violent and drug-related deaths.”

As of today, 18 of the 23 defendants have pleaded guilty. One defendant, Carmela Brooks, has been sentenced and received a term of imprisonment of five years.

U.S. Attorney Parker commended the investigation coordinated by Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission Central Ohio Human Trafficking Task Force, which includes Columbus Division of Police Chief Elaine Bryant; Shawn Gibson, Acting Special Agent in Charge, Homeland Security Investigations (HSI); and Orville O. Greene, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA). Other agencies that have assisted the task force with the investigation include the Franklin County Sheriff’s Office, HIDTA Task Force, IRS-Criminal Investigation, FBI, Ohio Bureau of Criminal Investigations (BCI), Ohio National Guard Counter Drug Task Force, Pickerington Police Department, New Albany Police Department, and the Fairfield County Sheriff’s Office SWAT Team.

Assistant United States Attorneys Timothy Prichard and Emily Czerniejewski are representing the United States in this case.

This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. More information about OCDETF can be found at https://www.justice.gov/OCDETF.

# # #

Source: US FBI

CHARLOTTE, N.C. – Thomas Lagene Franklin, 56, of Charlotte, was sentenced today to 15 years in prison followed by three years of supervised release for the armed robbery of two local convenience stores, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, on August 7, 2022, at approximately 3:30 a.m., a black vehicle pulled up alongside a male victim who was walking toward his hotel room in Charlotte. The driver of the vehicle, later identified as Franklin, demanded money from the victim. When the victim replied that he did not have any money, Franklin fired multiple shots at the victim striking him in the leg before driving away.

According to filed court documents, on August 9, 2022, Franklin robbed at gunpoint the Circle K convenience store located at 2833 Freedom Drive, in Charlotte. Court records show that, at approximately 1:45 a.m., Franklin entered the store wearing a bucket-style fishing hat with clear safety glasses and a black surgical mask. Upon entering the store, Franklin posed as a customer, brought items to the counter, and gave the clerk money to pay for those items. When the clerk opened the register, Franklin pulled a small silver semiautomatic handgun from his pocket, pointed it at the clerk, and demanded money in the register. The clerk complied and Franklin fled the scene.

According to court records, later the same day, the 7-Eleven convenience store located at 8315 Steele Creek Road, in Charlotte, was robbed at gunpoint in a similar fashion as the Circle K

robbery. At approximately 6:50 a.m., Franklin entered the store dressed identical to the robber from the Circle K robbery. Once again, Franklin acted as a customer and pretended to buy and pay for his items. When the store clerk opened the register, Franklin pulled out a small silver semi-automatic handgun and demanded money. The store clerk gave Franklin money and Franklin fled the scene. CMPD officers arrested Franklin the following day. A firearm recovered over the course of the arrest was identified as the gun used in the shooting and the two robberies.

On February 7, 2024, Franklin pleaded guilty to two counts of Hobbs Act robbery and one count of possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

U.S. Attorney King commended the FBI and CMPD for their investigation of the case.

Assistant U.S. Attorney Dana Washington of the U.S. Attorney’s Office in Charlotte prosecuted the case.

 

Source: US FBI

CHARLOTTE, N.C. – A citizen of the Republic of India was sentenced to prison today for stealing more than $20 million from hundreds of victims through the use of fake or “spoofed” websites mimicking the cryptocurrency exchange website Coinbase, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell ordered Chirag Tomar, 31, to serve 60 months in prison followed by two years of supervised release.

Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s sentencing hearing, from as early as June 2021, Tomar and his co-conspirators engaged in a spoofing scheme to steal millions in cryptocurrency from hundreds of victims located worldwide and in the United States, including in the Western District of North Carolina. Spoofing, as it pertains to cybercrime, is when a malicious cyber actor disguises an email address, sender name, or website URL to convince victims they are interacting with a trusted source. Court documents show that Tomar and his co-conspirators executed the fraud by spoofing Coinbase, one of the largest virtual currency exchanges in the world, that allows customers to buy, sell or trade cryptocurrencies.

Coinbase operated a “Pro” version of its exchange, which was found at the URL “Pro.Coinbase.Com.” According to court documents, Tomar and his co-conspirators spoofed the Coinbase Pro website by using a similar fake URL, CoinbasePro.Com, and created a fraudulent website to mimic the authentic website. Once victims entered their login credentials into the fake website, an authentication process was triggered. In some instances, victims were tricked into providing their login and authentication information of the real Coinbase website to fraudsters. Other times, victims were tricked into allowing fake Coinbase representatives to execute remote desktop software, which enabled fraudsters to gain control of victims’ computers and access their legitimate Coinbase accounts. The fraudsters also impersonated Coinbase customer service representatives and tricked the users into providing their two-factor authentication codes to the fraudsters over the phone. Once the fraudsters gained access to the victims’ Coinbase accounts, the fraudsters quickly transferred the victims’ Coinbase cryptocurrency holdings to cryptocurrency wallets under the fraudsters’ control.

Court documents show that, in February 2022, a victim located in the Western District of North Carolina attempted to log into his Coinbase account through the fraudulent website. The spoof website immediately notified the victim that his account was locked and prompted the victim to use a number provided to call a fake Coinbase representative. The fake representative tricked the victim into providing his two-factor authentication information, ultimately gaining access into the victim’s real Coinbase account. Using the information, fraudsters stole cryptocurrency from the victim’s Coinbase wallet worth over $240,000.

According to court records, Tomar used the victims’ stolen log-in credentials to access the victim accounts and transfer the victims’ cryptocurrency holdings to wallets controlled by Tomar. After Tomar received the stolen cryptocurrency, he would convert it to other forms of cryptocurrency and move the funds amongst many wallets controlled by Tomar. Ultimately, the cryptocurrency was converted into cash which was then distributed to Tomar and his co-conspirators.

Tomar used the victims’ funds to pay for his lavish lifestyle, including to purchase Audemars Piguet and other expensive watches, to buy luxury vehicles like Lamborghinis and Porsches, and to make trips to Dubai, Thailand and elsewhere.

On December 20, 2023, Tomar was arrested at the Atlanta airport upon entering the United States. On May 20, 2024, Tomar pleaded guilty to wire fraud conspiracy. Tomar remains in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. 

U.S. Attorney King commended the U.S. Secret Service for their investigation of the case and thanked the FBI in Nashville for their invaluable assistance.

Assistant U.S. Attorney Matthew T. Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

 

Source: US FBI

GREENSBORO, NC – United States Attorney Sandra J. Hairston for the Middle District of North Carolina announced today that Assistant United States Attorney (AUSA) JoAnna McFadden will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election.  AUSA McFadden has been appointed to serve as the District Election Officer (DEO) for the Middle District of North Carolina, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

“Free and fair elections require that every eligible citizen must be able to vote without interference or discrimination, and election officials and staff must be able to serve without being subject to unlawful threats of violence,” said United States Attorney Hairston. “The Department of Justice will always work tirelessly to protect the integrity of the election process. We all must ensure that those who are entitled to vote can do so if they choose, and that those who seek to corrupt the voting franchise –the cornerstone of American democracy – are brought to justice.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).   

In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO McFadden will be on duty in this District while the polls are open.  She can be reached by the public at the following telephone number: 336-332-6362.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI office can be reached by the public at (704) 672-6100 and callers should ask to speak with the Election Crimes Coordinator.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

United States Attorney Hairston said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

###

Source: US FBI

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Frank Lynold Mercado, 27, of Charlotte, to 41 months in prison followed by two years of supervised release for defrauding over 100 victims of more than $700,000 through a fraudulent investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Mercado was also ordered to pay $709,690 in restitution.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, from July 2019 to December 2022, Mercado executed an investment fraud scheme in which he caused more than 100 investors to sustain nearly $700,000 in losses. Mercado induced the victims – many of whom were his friends, former co-workers, and other social acquaintances – to invest their money by holding himself out to be an expert in options trading with years of experience and a successful track record. As part of the scheme, Mercado falsely represented to victim investors that he would use their money for options trading and similar investments through his hedge fund, Tiger-Wolf Capital, LLC (Tiger-Wolf Capital). Instead of investing the funds as promised, Mercado used a portion of the money to make Ponzi-style payments to investors, and to fund his personal lifestyle, including to make large credit card payments and pay for personal expenditures such as Airbnb rentals, restaurants, and bars.

Court documents show that with the money that he did invest, Mercado suffered trading losses and then lied to investors about the performance of their investments. For example, Mercado periodically sent updates to victim investors through emails, text messages, or screenshots of purported account portals that reflected fictitious trading gains. He also made false and fraudulent statements to investors about substantial returns on their investments in order to induce his victims to invest additional money with him and/or to leave their current investments with him. According to court documents, as a result of the scheme, Mercado caused victims to suffer losses, with some victims experiencing significant financial hardship.

On June 12, 2022, Mercado pleaded guilty to wire fraud. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

On May 30, 2024, the U.S. Securities and Exchange Commission announced the filing of a complaint against Mercado in the U.S. District Court for the Western District of North Carolina, charging Mercado and Tiger-Wolf Capital with securities violations.  On July 2, 2024, the court, pursuant to consents signed by Mercado and Tiger-Wolf, enjoined them from violating the charged provisions and ordered them to pay disgorgement, prejudgment interest, and civil money penalties in amounts to be determined at a later date.  The court also barred Mercado from serving as officer or director of a public company and enjoined him from participating in the issuance, purchase, offer, or sale of securities, except in his personal account.

U.S. Attorney King commended the FBI for their investigation of the case and thanked the U.S. Securities and Exchange Commission for their coordination and assistance.

Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte prosecuted the case.