Santa Monica Man Sentenced for Multi-Million Dollar Crypto Scheme

From 2017 to 2021, He Operated a VirtuL-Currency Money Services Business Known as Digital Coin Strategies LLC

A 33-year-old Santa Monica man, Charles James Randol, was sentenced to four months in prison for helping launder millions through a cryptocurrency exchange. 

In September, Randol agreed to plead guilty to a federal charge for allowing his cryptocurrency-cash exchange company to aid scammers and drug traffickers in laundering millions of dollars in criminal proceeds.

Randol’s plea agreement involves admitting guilt to a single-count information for failure to maintain an effective anti-money laundering (AML) program. Both the information and plea agreement were filed in United States District Court in downtown Los Angeles

According to the plea agreement, from October 2017 to July 2021, Randol operated a virtual-currency money services business known as Digital Coin Strategies LLC, offering cryptocurrency-cash exchange services. 

He engaged in various methods, including in-person transactions, automated kiosks in multiple counties, and Bitcoin-for-cash transactions for unknown individuals who mailed substantial amounts of U.S. currency. 

Randol advertised falsely on his company website, claiming compliance with AML regulations, while, in reality, he repeatedly violated federal law and his own AML policies by facilitating suspicious currency exchange transactions and concealing them from law enforcement.

He engaged in in-person cash transactions exceeding $10,000 with anonymous individuals, violating AML policies. He exchanged $273,940 in cash for Bitcoin without proper identification, contravening regulations.

Additionally, Randol facilitated Bitcoin-for-cash transactions after receiving large cash shipments from anonymous senders via mail. He conducted these transactions without due diligence on the source of funds, often receiving suspiciously packaged cash hidden inside various items. Despite a brief hiatus due to law enforcement scrutiny, Randol resumed this activity, contributing to the laundering of fraud proceeds.

Furthermore, Randol’s deficient AML practices allowed criminals to structure and launder funds through Bitcoin kiosks he operated in various locations. He set up “test” accounts against compliance advice, enabling customers to avoid currency reporting requirements.

Randol’s failure to comply with AML requirements resulted in his business laundering funds from a New Jersey victim deceived into sending money for a fictitious legal issue. Despite hiring a compliance officer, Randol continued risky practices, leading to an investigation by the FBI, Homeland Security Investigations, Federal Deposit Insurance Corporation Office of Inspector General, and the United States Postal Inspection Service.

in Hard, News
Related Posts

Sci Fi Museum’s Lease Gets Terminated at Former Sears Building

June 21, 2024

June 21, 2024

The News Comes as a Slew of Controversies Surround the Museum and Its Founder By Zach Armstrong Amid tumultuous setbacks and...

(Video) Sport Fishing and Whale Watching on the Pacific Offered by MDR Sportfishing

June 20, 2024

June 20, 2024

Located Out of Marina del Rey, More Information Can Be Found at mdrsf.com @palisadesnews Operating out of Marina del Rey,...

This Palisadian Will Be the Youngest Ever U.S. Olympian in Beach Volleyball

June 20, 2024

June 20, 2024

Miles Partain, 22, Is One of Several Olympians That Came Out of Pali High By Zach Armstrong Palisadian talent will...

Pride-Colored Towers Vandalized During Pride Month for Two Straight Years in Palisades

June 20, 2024

June 20, 2024

L.A. County Supervisor Lindsey Horvath Stated That the Graffiti Will Be Removed By Zach Armstrong For two consecutive years, pride-colored...

Woman Assaulted with Skateboard on Venice Boardwalk

June 20, 2024

June 20, 2024

The Victim Was Identified as a 40-Year-Old-Female By Zach Armstrong LAPD arrested a man who assaulted a woman with a skateboard...

Judge Blocks Barrington Plaza Evictions, Citing Legal Violations

June 20, 2024

June 20, 2024

Owner Douglas Emmett Inc. Sought to Evict Nearly 600 Tenants Last Year, Citing Safety Upgrades The eviction of hundreds of...

Brentwood, Palisades, West LA Libraries Closures for Juneteenth

June 18, 2024

June 18, 2024

Upcoming Program and Event Schedules for The Week  Brentwood Library Schedule: We are celebrating Juneteenth this Wednesday, June 19! The...

Yoga Gurus Sentenced for Defrauding Malibu Doctor

June 18, 2024

June 18, 2024

Dr. Sawusch Had a Successful Medical Practice in Pacific Palisades and Amassed Significant Wealth Through Investments A federal judge sentenced...

Texas Man Sentenced to 33 Months for Threatening U.S. Rep. Maxine Waters

June 18, 2024

June 18, 2024

Gaherty Targeted the Congresswoman With Racist and Violent Threats  A Texas man was sentenced to 33 months in federal prison...

Tech Entrepreneur and Developer Company Buy Promenade Shops for $103M: Report

June 18, 2024

June 18, 2024

Acquisitions Include 1202, 1222, 1225, 1232, 1339, and 1344 Third Street Promenade Federal Realty Investment Trust has sold eight parcels...

ATAM to Host Content Creation Camp for Kids

June 17, 2024

June 17, 2024

All Ages Welcome, Popular Among Ages 7-12, With Offerings for Ages 4.5 ATAM is hosting a Content Creation and Editing...

Slain Jameson’s Pub Manager Described as a “Provider and Father Figure” by Loved Ones

June 17, 2024

June 17, 2024

His Last Days Were Spent Taking His Niece and Nephew Out for Ice Cream By Zach Armstrong  Family members, friends...

Michelin-Starred Chef James Kent Passes Away, Saga Hospitality Group Announces

June 16, 2024

June 16, 2024

Chef Kent Is Remembered for His Culinary Excellence and Charity Work The Saga Hospitality Group announced the death of Michelin-starred...

Brand New, Six-Bed Palisades Mansion Hits Market at $34M

June 16, 2024

June 16, 2024

The lower level boasts a bar, lounge, wine tasting room, home theater, and a full spa with a gym A...

Marina del Rey Sportfishing: A Great Day on the Water

June 14, 2024

June 14, 2024

Fishing is a pastime like no other. You can experience the nostalgia of that pastime in real time at Marina...