Founder of AML Bitcoin Convicted of Wire Fraud and Money Laundering

Rowland Marcus Andrade, the founder of AML Bitcoin, has been convicted of wire fraud and money laundering following a five-week trial in the Northern District of California. A jury found Andrade guilty of misleading investors while raising funds for AML Bitcoin between 2017 and 2018. He now faces a maximum sentence of 30 years in prison.

According to prosecutors, Andrade falsely claimed that AML Bitcoin was more technologically advanced than Bitcoin and misrepresented its potential adoption, including stating that the Panama Canal Authority planned to accept the cryptocurrency for fee payments. However, AML Bitcoin was never officially launched, and investors were left with nothing.

During the trial, it was revealed that Andrade had defrauded investors of over $2 million, which he then diverted for personal use, spending the funds on luxury cars, real estate, and other extravagant expenses. Prosecutors detailed how he attempted to conceal the fraudulent activity by transferring money through multiple bank accounts.

"Mr. Andrade’s outrageous lies lured and scammed individuals into investing their hard-earned money into a new cryptocurrency with fabricated features," said Linda Nguyen, a special agent with the U.S. Internal Revenue Service. "But there is nothing advanced about this scheme. Rowland Marcus Andrade stole money from innocent people and used it to further his personal wealth."

Following his conviction, Andrade now faces up to 20 years in prison for fraud and an additional 10 years for money laundering. His sentencing is scheduled for July, and he will be required to forfeit any assets obtained through the scheme.

In addition to the criminal case, the U.S. Securities and Exchange Commission (SEC) brought a parallel civil case against Andrade, alleging that he and the NAC Foundation—the entity behind AML Bitcoin—raised $5.6 million from 2,400 investors. The SEC claimed that Andrade misused approximately $1.1 million of these funds for personal expenses.

Also implicated in the fraudulent scheme was political lobbyist Jack Abramoff, who worked with Andrade to promote AML Bitcoin while violating antifraud and securities registration laws. Abramoff, a former Republican lobbyist with a history of corruption charges, agreed to a plea deal in 2020 and paid over $50,000 in disgorgement.

Abramoff had previously served four years of a six-year prison sentence for corruption in a separate case. His involvement in political scandals was later dramatized in the film Casino Jack.

By fLEXI tEAM