Even if they can’t establish securities fraud it seems like they have wire fraud based on the deleted tweets alone. Plus whatever internal accounting manipulations he had going on are likely some form of honest services fraud. Plus they were handling some international withdrawals through a front company in California that pretended to be an electronics wholesaler called North Dimension Inc which from what I can tell did not register with FINCEN so they have unlicensed money transmitter and potentially some other fraud because they likely misrepresented the business to banks too. For sentencing you basically get a score that increases with loss amount, increases with whether any victims faced financial hardship (in this case obviously yes), and decreases with things like cooperation and acceptance of responsibility. See https://www.sentencing.us/. But IANAL.
from|3 years ago