Mark Scott likely to have bank employees testify against him
The DOJ has requested permission to present several witnesses at Mark S. Scott’s trial via CCTV.
Attached to the filing is a special agent declaration, which reveals insight into evidence the DOJ will present against Scott.
As per the DOJ’s case, Scott set up a series of private equity funds to launder OneCoin investor funds through.
The DOJ refers to these shell companies as the “Fenero Funds”.
$300 million of the estimated $400 million Mark Scott laundered for OneCoin, was done so through the Bank of Ireland (BOI).
The DOJ alleges Scott obtain BOI “Fenero Ireland” accounts through “misrepresentations”, ‘in order to disguise the fact that the funds were derived from the OneCoin scheme‘.
As part of their investigation into OneCoin, the DOJ has been collecting evidence from the BOI for two and a half years.
In addition to documentary evidence collected, the DOJ is planning on producing testimony from four BOI employees.
These include two former members of BOI’s Foreign Direct Investment team, the head of BOI’s Anti-Money Laundering team, and a then Executive Vice President and Relationship Director (two positions, one individual).
As per an attached special agent declaration, specific misrepresentations made by Scott to the four employees include:
- that Scott was “the 100% ultimate beneficial owner” of Fenero Ireland
- funds transferred through the set up BOI accounts would be “financial services companies, real estate, and startup companies, through investment vehicles formed in Ireland”;
- Scott’s clients were “wealthy European families” he “had known for many years”;
- investment amounts would be secured at a future date;
- Scott intended to set up a Fenero Funds physical office in Ireland;
- said Irish Fenero Funds office would ‘employ 100 employees within 5 years, but would have a physical presence and 10 employees to manage the company in Ireland initially‘
- that as per the BOI’s KYC due-diligence program, Scott, as the 100% legal owner of Fenero Ireland, was required to inform BOI of any investor contributing over 10% into his BOI accounts
- that in contrary to representations made regarding KYC, “Scott did not formally notify BOI of any new investors” when funds were transferred to Scott’s BOI accounts
In one particular instance, a transaction to a UAE bank account held by Phoenix Fund Investments raised suspicion and was flagged.
When queried about it by BOI staff, instead of explaining the nature of the transaction and details of Phoenix Funds Investments , Scott ‘requested that the transfer be retracted and the money returned to the BOI Fenero Account‘.
BOI staff also allege Scott
resisted providing any information about the Fenero Funds investors whose money was sent to the BOI Fenero Accounts, and in fact, never did so.
Perhaps central to the case, Scott not once mentioned Ruja Ignatova, OneCoin or any OneCoin related entities or individuals to BOI staff.
And remember, that’s despite 100% of the funds Scott laundered through BOI being OneCoin investor funds.
Possibly fearing their own arrest if they traveled outside of Ireland, the four BOI employees rejected the DOJ’s offer to fly them out and cover all travel expenses – even if safe passage letters were arranged.
Another possibility for the refusal is fear of retaliation from OneCoin or OneCoin related entities. OneCoin’s links to organized crime outfits in Europe are on the public record.
The BOI employees have agreed to give testimony at Scott’s trial, but only if they can do so from Ireland.
This is a right reserved by the BOI witnesses, as per the Mutual Legal Assistance Treaty between Ireland and the US.
If permission to provide live CCTV testimony is denied by the court, sworn depositions have been put forward as an alternative.
A decision on the DOJ’s motion is pending. Mark Scott is scheduled to face trial on November 4th.