TYLER, Texas — A Nevada man and a South Carolina man have been charged with conspiring to launder cryptocurrency money in the Eastern District of Texas, U.S. Attorney Brit Featherston announced.
Randall V. Rule, 71, of Reno, NV, and Gregory C. Nysewander, 64, formerly of Irmo, SC, were named in an indictment filed by a federal grand jury this week charging them with money laundering Conspiracy, money laundering, and a conspiracy to violate the Bank Secrecy Act.
According to the indictment, Rule and Nysewander allegedly conspired with others to launder the proceeds of wire transfer and mail fraud schemes with cryptocurrency. The defendants converted funds from love scams, business email compromises and real estate scams and other fraudulent schemes into cryptocurrency and sent the cryptocurrency to accounts controlled by foreign and domestic co-conspirators. The defendants and their co-conspirators provided false information and withheld material facts to avoid exposing the fraudulent nature of deposits, transfers and wire transfers, such as instructing co-conspirators and victims to label wire transfers as “loan repayments” and “advertising” . The defendants also provided false information and withheld material facts when filling out account opening documents and communicating with financial institutions and cryptocurrency exchanges. During the course of the conspiracy, Rule, Nysewander and their co-conspirators allegedly laundered more than $2.4 million. Rule and Nysewander are also accused of willfully violating the requirements of the Bank Secrecy Act for money services transactions.
If convicted, Rule and Nysewander face up to 20 years in federal prison for money laundering and up to 5 years in federal prison for conspiracy to violate the Bank Secrecy Act. A grand jury indictment is not proof of guilt. A defendant is presumed innocent until proven guilty in a court of law.
This effort is part of an operation by the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-gathering, multi-agency approach. For more information about the OCDETF program, visit https://www.justice.gov/OCDETF.
This case is being investigated by the US Secret Service and the US Postal Inspection Service and is being prosecuted by Assistant US Attorney Nathaniel C. Kummerfeld.