Restitution against Ponzi scammer Ryan Ginster has been dropped because none of his victims came forward.

Following entry of a guilty plea, Ginster (right) was sentenced to 27 months in prison back in March.

Ginster’s restitution hearing was scheduled for August 2nd.

Despite ~$5 million in losses and Ginster having “admitted to defrauding investors”, the restitution component of his sentencing has been dropped.

On July 31st the DOJ informed the court;

To date … no victims have contacted the government or come forward seeking restitution.

The DOJ cites the use of cryptocurrency as the reason they have been unable to reach out to Ginster’s victims individually.

As a result of nobody coming forward to claim anything against Ginster, the DOJ requested the court

vacate the restitution hearing set for August 2, 2023, and to enter an Amended Judgment Order with no restitution ordered.

On August 1st the DOJ’s motion was granted.

Following conclusion of criminal proceedings, the SEC’s parallel civil case against Ginster is expected to be reopened.

The SEC’s case was stayed pending the outcome of Ginster’s criminal proceedings in March 2022.

As per a June 26th, 2023 Status Report filed by the SEC;

Once the criminal sentencing has been finalized, the parties to this action anticipate being able to agree upon the material terms of a settlement and will seek to lift the stay in this matter to take the appropriate action.

Then counsel for the SEC will present the proposed settlement to the Commissioners of the SEC for approval and will promptly notify this Court when the Commissioners have acted upon the proposal.

Pending filing of a proposed settlement in the interim, the SEC’s next Status Report is due by October 24th.

The terms of Ginster’s SEC settlement are expected to clean out what remains of his ill-gotten gains. A civil monetary penalty is likely also be imposed.

 

Update 19th January 2024 – Ryan Ginster died serving his prison sentence on December 9th, 2023.