Key Takeaways
- • Rowland Marcus Andrade, 47, convicted by federal jury in San Francisco on wire fraud and money laundering charges related to fraudulent marketing and sale of AML Bitcoin cryptocurrency, which raised millions through false investor statements.
- • Andrade made material misrepresentations about AML Bitcoin technology viability, business deals, and release dates, including a fabricated claim that the Panama Canal Authority had agreed to permit the cryptocurrency for ships transiting the canal.
- • Diverted more than $2 million in investor proceeds for personal use, including purchase of two Texas properties and two luxury automobiles, with funds laundered through multiple bank accounts.
- • Conviction follows five-week trial before Chief U.S. District Judge Richard Seeborg in the Northern District of California, representing continued federal enforcement focus on cryptocurrency investment fraud schemes.
- • Acting U.S. Attorney Patrick D. Robbins emphasized that deception-based fundraising through misrepresented technology remains illegal regardless of sector innovation claims, signaling sustained prosecutorial priority for crypto fraud cases.
Summary
A federal jury in San Francisco has convicted Rowland Marcus Andrade, 47, of wire fraud and money laundering in connection with a cryptocurrency investment scheme centered on a digital asset called AML Bitcoin. The conviction followed a five-week trial before Chief U.S. District Judge Richard Seeborg in the Northern District of California, with the jury finding Andrade guilty on multiple counts related to fraudulent marketing and sale of the cryptocurrency.
According to evidence presented at trial, Andrade made systematic false and misleading statements to potential investors regarding AML Bitcoin's technological development, commercial viability, prospective business partnerships, and anticipated release date. Most significantly, Andrade fabricated a material claim that the Panama Canal Authority had reached an agreement permitting AML Bitcoin to facilitate transactions for vessels transiting the canal—a representation entirely unsupported by any actual business arrangement. These misrepresentations formed the foundation of a fundraising scheme that attracted millions of dollars from investors.
Beyond the fraudulent marketing claims, Andrade personally diverted more than $2 million in proceeds generated from AML Bitcoin sales. The diverted funds were applied to personal expenses including the acquisition of two residential properties in Texas and two luxury automobiles. Compounding the fraud, Andrade actively laundered these investor funds through multiple bank accounts before converting them to his personal use and acquisitions.
Acting U.S. Attorney Patrick D. Robbins commented on the conviction, stating: "Fraudsters often tout new and innovative technology in order to raise money from investors. But raising money through lies and misrepresentations is neither new nor innovative. It's unlawful, plain and simple." The prosecution emphasized that regardless of sector or claimed technological innovation, investor deception for personal enrichment remains subject to federal criminal enforcement. This conviction reflects ongoing Department of Justice focus on cryptocurrency-related fraud cases, consistent with broader regulatory scrutiny of the digital assets space.
According to evidence presented at trial, Andrade made systematic false and misleading statements to potential investors regarding AML Bitcoin's technological development, commercial viability, prospective business partnerships, and anticipated release date. Most significantly, Andrade fabricated a material claim that the Panama Canal Authority had reached an agreement permitting AML Bitcoin to facilitate transactions for vessels transiting the canal—a representation entirely unsupported by any actual business arrangement. These misrepresentations formed the foundation of a fundraising scheme that attracted millions of dollars from investors.
Beyond the fraudulent marketing claims, Andrade personally diverted more than $2 million in proceeds generated from AML Bitcoin sales. The diverted funds were applied to personal expenses including the acquisition of two residential properties in Texas and two luxury automobiles. Compounding the fraud, Andrade actively laundered these investor funds through multiple bank accounts before converting them to his personal use and acquisitions.
Acting U.S. Attorney Patrick D. Robbins commented on the conviction, stating: "Fraudsters often tout new and innovative technology in order to raise money from investors. But raising money through lies and misrepresentations is neither new nor innovative. It's unlawful, plain and simple." The prosecution emphasized that regardless of sector or claimed technological innovation, investor deception for personal enrichment remains subject to federal criminal enforcement. This conviction reflects ongoing Department of Justice focus on cryptocurrency-related fraud cases, consistent with broader regulatory scrutiny of the digital assets space.
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