Texas Man Convicted in ‘AML Bitcoin’ Pump and Dump Linked to ‘Casino’ Jack Abramoff

• Marcus Andrade was convicted of a $5.6M crypto fraud scheme
• Jack Abramoff pleaded guilty to the scheme but avoided a prison sentence
• Fraud claims included fake government adoption deals

A crypto entrepreneur has been convicted of orchestrating a fraudulent “pump and dump” scheme connected to disgraced casino lobbyist Jack Abramoff.

A federal jury in Northern California last Wednesday found Rowland Marcus Andrade guilty of wire fraud and money laundering in connection with the initial coin offering (ICO) of “AML Bitcoin” in 2017 and 2018.

AML Bitcoin is one of the first and longest-running crypto pump-and-dump cases involving federal prosecutors.

Abramoff, who was Adrade’s co-conspirator in the case, pleaded guilty in 2020 to fraud and violating the Lobbying Disclosure Act. He was ordered to pay $50K in disgorgement and interest but was spared prison. Andrade faces up to 30 years when sentenced later this year.

‘Better than Bitcoin’

Andrade was the founder of the Nevada-based NAC Foundation, which raised at least $5.6 million from thousands of investors in AML Bitcoin. He falsely claimed the cryptocurrency was technologically superior to the original Bitcoin and that multiple government agencies were negotiating to use it, according to court documents.

Among the claims were that AML Bitcoin had anti-money laundering, anti-terrorism, and theft-resistant technology built into the coin on NAC’s own “privately regulated public blockchain,” which didn’t exist, according to prosecutors.

This was a marketing manipulation strategy to boost the token’s trading volume and price, allowing Andrade to divert more than $2 million in proceeds when it reached its height. He spent the money on personal expenses, including two properties in Texas and two luxury automobiles, prosecutors said.

Who is ‘Casino’ Jack Abramoff?

Abramoff helped promote the fraudulent investment scheme through lobbying and marketing. He’s better known for his involvement in an early 2000s federal corruption case that included defrauding Native American tribes out of millions of dollars by overcharging for lobbying services promoting their gaming rights while secretly working against their interests.

The once politically influential lobbyist was also involved in the fraudulent purchase of a fleet of casino cruise ships, SunCruz. He used a fake wire transfer to con lenders into believing he and his co-conspirator, Adam Kidan, had made a $23 million down payment on the fleet to qualify for a $60 million loan.

His exploits were depicted in the film ‘Casino Jack,’ starring Kevin Spacey. His behavior also led to major reforms of the lobbying industry.

Abramoff’s conviction in the AML Bitcoin case made him the first person to be found guilty of violating the amended Lobbying Disclosure Act, which was significantly updated in 2007 as a result of his previous misconduct.