Cryptocurrency fraudster Roger Nils-Jonas Karlsson pleads guilty to securities fraud
The United States Department of Justice (DOJ) confirms that Roger Nils-Jonas Karlsson, a citizen of Sweden, has pleaded guilty to securities fraud, wire fraud, and money laundering charges that defrauded more than 3,500 victims of more than $16 million.
Let’s recall that Karlsson and his company Eastern Metal Securities (EMS) were charged in a criminal complaint filed March 4, 2019, with crimes involving a scheme to defraud victims of more than $16 million. Karlsson, also known by several aliases including Steve Heyden, Euclid Deodoris, Joshua Millard, Lars Georgsson, Paramon Larasoft, and Kenth Westerberg, was arrested on June 17, 2019, in Thailand and was extradited to the United States to face the charges.
A federal grand jury indicted Karlsson and EMS on July 25, 2019. Karlsson pleaded guilty to all the charges pending against him. EMS has ceased to exist.
Karlsson and EMS used a website to commit wire fraud against thousands of victims. Specifically, the indictment explains that from November 2012, through June 2019, Karlsson and EMS used www.easternmetalsecurities.com to make fraudulent representations and convince victims to send funds using a virtual currency exchange. During the same period, Karlsson and EMS used deceptive “devices and contrivances” to sell securities and then tried to conceal the proceeds of the wire fraud and securities fraud.
During the proceedings, Karlsson admitted that he used the website to invite potential investors to purchase shares of the plan for less than $100 per share, promising an eventual payout of 1.15 kilograms of gold per share, an amount of gold which as of Jan. 2, 2019, was worth more than $45,000. Karlsson advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97% of the amount they invested. Karlsson admitted he had no way to pay off the investors.
The funds provided by victims were transferred to Karlsson’s personal bank accounts and he then used proceeds to purchase expensive homes and a resort in Thailand.
As the government has alleged, Karlsson also used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson brought the investors in HCI25 together with the investors in the “Pre Funded Reversed Pension Plan” (PFRPP) and posted multiple communications to delay the moment investors would realize there would be no payout.
Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. He admitted he defrauded no less than 3,575 victims of more than $16 million.
Karlsson faces a maximum sentence of 20 years in prison and a maximum $250,000 fine for the wire fraud and securities fraud charges, and 20 years in prison and a $500,000 maximum fine for the money laundering charge.
In addition, the court may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate.