On Friday the FBI announced that, Haddo Renwick (Renwick Haddow), 49-year-old British citizen, was extradited to the U.S. from Morocco to stand trial in new York. He is accused of illegally obtaining $ 36 million through the embezzlement of investment funds of two companies — Bitcoin Store and Bar Works.
Haddow, was arrested in Morocco in July 2017 after the Commission on securities and exchange Commission (SEC) filed charges against him for fraud. He allegedly used sales representatives for cold calling potential investors and selling securities in two controlled companies, while concealing their participation in the business due to his dark past.
According to the SEC complaint, in advertising materials presented to the investors of both companies, told about the executives who actually did not exist. In addition, they had distorted some key facts about operations. Haddow, allegedly withdrew more than 80% of the funds collected for the Bitcoin Store, and moved more than $ 4 million from Bank accounts of the company Bar Works on Mauritius and a further $ 1 million in Morocco.
The materials for investors Bitcoin Store said that this investment – «simple and secure way of storing and selling bitcoin,» and that the company has earned several million dollars in gross sales. However, SEC contends that the company never carried out the actual operations. Haddow worked under the pseudonym «Jonathan Black» to conceal their involvement in the activities of the companies and claimed that he has extensive experience in the field of Finance.
«As alleged in our complaint, Haddow created two companies and misled investors on the assumption that well-qualified managers will lead them to a quick profit. In fact, Haddo management company from behind the scenes, and they were far from profitability,» explained Andrew M. Calamari (Andrew M. Calamari), Director of the new York regional office SEC.
Currently, Haddow charged with two counts of electronic fraud, the maximum penalty for each is up to 20 years in prison.