Investment Fraudsters Sentenced to Over Six Years for Telecoin Crypto Scam - Blockchain.News

Investment Fraudsters Sentenced to Over Six Years for Telecoin Crypto Scam

Jessie A Ellis Jul 30, 2023 15:30

Two fraudsters, Ross Jay and Michael Freckleton, were sentenced to over six years for a £500,000 scam involving a fictitious cryptocurrency "Telecoin."

Investment Fraudsters Sentenced to Over Six Years for Telecoin Crypto Scam

According to City of London Police Website, two individuals, Ross Jay, 33, and Michael Freckleton, 37, have been sentenced to six years and three months and six years and six months in prison, respectively, for their roles in a fraudulent crypto scheme. The sentencing took place at Southwark Crown Court following a five-week-long trial.

The duo was found guilty of conspiracy to defraud, orchestrating a scam revolving around a fictitious crypto called "Telecoin." Operating under the company name Digi Ex, they targeted potential investors through cold-calling, convincing them to invest in non-existent digital assets.

Between 2015 and 2017, a total of £509,599 was deposited into Digi Ex accounts, with £409,493 traced back as payments from investors. The scam exploited the allure of the emerging cryptocurrency market, deceiving victims, and siphoning their money without providing any credible investment services.

Jay and Freckleton paid themselves salaries amounting to over £139,000 from investors' money and withdrew an additional £145,000 in cash from the Digi Ex business account. They even set up a shell company under the name "Telecoin" to cover their tracks, but no money was ever used to acquire the promised crypto.

Detective Chief Inspector Lee Parish, from the Fraud Operations team at City of London Police, emphasized the risks of investing in emerging and potentially unstable currencies. He urged potential investors to conduct thorough research and consult with accredited financial advisors or invest with FCA registered companies.

The sentencing of Jay and Freckleton serves as a stark reminder of the risks associated with crypto investments, particularly in unregulated or fictitious assets.

The case highlights the importance of due diligence and the need for investors to be cautious and well-informed. The City of London Police's successful pursuit of justice in "Operation Curry" sends a strong message against investment fraud and the exploitation of the cryptocurrency market.

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