UK Court Hands Down Prison Sentences in $2M Cold-Call Crypto Fraud

UK Court Hands Down Prison Sentences in $2M Cold-Call Crypto Fraud

Two men receive over 12 years combined for defrauding dozens via fake investment schemes

Two men behind a £1.54 million ($2 million) crypto scam have been sentenced to more than 12 years in prison by a London court after pleading guilty to running a fraudulent cold-calling operation that targeted unsuspecting investors across the UK.

Crypto Cold-Callers Sentenced in Major Fraud Case

The Financial Conduct Authority (FCA) confirmed Friday that Raymondip Bedi and Patrick Mavanga were convicted for their roles in a high-return investment scam that duped at least 65 people between February 2017 and June 2019.

• Bedi was sentenced to five years and four months

• Mavanga received six years and six months

According to the FCA, the duo used a professional-looking website to lure victims with false promises of high returns on crypto investments. But the schemes were nothing more than a callous attempt to exploit public interest in digital assets.

“Bedi and Mavanga ruthlessly defrauded dozens of innocent victims,” said Steve Smart, FCA’s joint executive director of enforcement and market oversight.

Shell Companies and Fake Firms Used to Launder Funds

Victims were encouraged to send money to firms controlled by the fraudsters, including Astaria Group LLP, CCX Capital, and fraudulent clones of Ian Buckley Financial Services and Capital Partners Group.

The FCA described both men as “leading players in a conspiracy”, with Judge Griffiths at Southwark Crown Court stating during sentencing that they “drove a coach and horses through the regulatory system.“

Guilty Pleas and Perverted Justice

The duo were charged in April 2023 and later pleaded guilty in November:

• Bedi admitted to conspiracy to defraud, money laundering, and breaching UK financial services laws.

• Mavanga pleaded guilty to conspiracy to defraud, breaching financial laws, and possessing fake ID documents.

Mavanga was also convicted by a jury for perverting the course of justice after deleting call recordings following Bedi’s arrest in March 2019.

A third defendant will face retrial in September, while Rowena Bedi, who had faced a money laundering charge, was acquitted.

UK Regulators Tighten Grip on Crypto Fraud

The sentencing sends a strong message amid a growing number of crypto-related scams in the UK. With crypto investment interest still rising, regulators are ramping up enforcement to protect retail investors from deceitful schemes disguised as legitimate opportunities.