DOJ: Emails prove Mark Scott knew OneCoin was fraudulent
The DOJ has filed a letter requesting several communications be admitted as evidence, on the grounds they prove Mark Scott knew OneCoin was fraudulent.
The communications in question are correspondence between Scott and “bank and other providers”.
Banks and other providers became suspicious of both OneCoin and the Fenero Funds, and chose to terminate customer relationships with the defendant and his co-conspirators in light of those concerns.
The closure of bank accounts that transacted OneCoin proceeds establishes Scott’s direct knowledge of OneCoin’s banking troubles, one of the very reasons OneCoin required Scott’s money laundering services.
Despite having accounts repeatedly closed down due to “concerns around money laundering, source of wealth, and related issues” from April 2016, Scott continued to work with OneCoin “well into 2018”.
In December 2015 TD Bank expressed concerns to Gilber Armenta regarding OneCoin
falsely representing on its website and communications with customers that it has a banking relationship with TD Bank.
OneCoin did bank with TD Bank, but only through shell companies Armenta and Scott had set up.
It appears that you may be affiliates with OneCoin, make misrepresentations or ommissions to TD Bank in opening your accounts, and are participating in this unlawful use of TD Bank’s name.
This may be in breach of your account agreement and may subject TD Bank to harm.
TD Bank hereby demands that you cease and desist all uses of TD Bank’s name and account information, including in any communications concerning OneCoin.
TD Bank shut down OneCoin’s shell company accounts on December 9th. This came five days after BehindMLM reported OneCoin’s shift to the new accounts.
The quoted paragraphs above are from communications sent by TD Bank to Armenta, which were forwarded to Mark Scott.
In another 2016 email sent to the Appleby Law Firm, Scott defended OneCoin’s fraudulent business model;
I am equity partner in the 35th largest law firm and I feel I have been treated like a walk-in. You guys contacted us for business and I took the chance.
You should take the time to ask more questions and better understand the business wed [sic] are initiating before taking a position that is more extreme than any regulatory body.
Also, I would expect advice more so than constant questioning.
Failure to provide adequate KYC is a recurring theme in the financial institutions the DOJ cites as evidence. Concerns about money laundering is another recurring theme.
The law firm Mason Hayes & Currant wrote to Scott in October 2017, the same month Ruja Ignatova disappeared;
Given your failure to provide both the information and documents required by us to identify the beneficial owners of the Companies for our anti-money laundering and counter terrorism purposes and the information required by us to understand the nature of the activities of the Companies, in addition to resigning as company secretary, we are resigning as lawyers to the remaining Companies with immediate effect.
The DOJ argues that Scott’s emails
are highly probative evidence of the defendant’s state of mind at the time that he was involved in alleged conspiracies to launder OneCoin fraud proceeds and to commit bank fraud—an issue in dispute in this case.
The exhibits should be admitted for the limited purpose of establishing the defendant’s knowledge and intent, with appropriate limiting instructions where warranted.
At the time of publication a decision on the DOJ’s admission request remains pending.