Plaintiff in civil suit claims Garza has reached plea deal TALK TO US If you'd like to leave a comment (or a tip or a question) about this story with the editors, please email us.We also welcome letters to the editor for publication; you can do that by filling out our letters form and submitting it to the newsroom.Powered by Creative Circle Media SolutionsOne of the two government officials charged with some shady dealings during the investigation of Silk Road pleaded guilty today.Carl Force used to work for the DEA and during the course of his investigation was doing things that might even make the darknet blush.Force contacted Silk Road founder Ross Ulbricht under the name Nob and allegedly coaxed Ulbricht into paying $50,000 for information into the ongoing investigation.Force told his employers at the DEA but failed to mention the payment, which went into Force’s personal account.That’s a big no-no.Carl Force, a former U.S.Drug Enforcement Administration agent, admitted to charges of extortion, money laundering and obstruction of justice.

In a San Francisco federal court, Force appeared in an orange jump suit and leg shackles and acknowledged a litany of criminal acts.Among them, Force said he agreed to a contract with Twenty-First Century Fox Inc (FOXA.O) last year to help make a movie about the Silk Road investigation, without the permission of his supervisors.That deal called for him to be paid up to $240,000.Yep, you read that right.Force took $240,000 from a movie studio for the right to use his story in the future.Apparently that’s also a big no-no in an investigation like this.Force also allegedly tried to double-dip, asking for $98,000 in bitcoin under a different pseudonym for information on the Silk Road case.This case was really just a whole barrel of no-no’s.Prosecutors have already reached a plea deal with a former Secret Service agent named Shaun Bridges who was allegedly running a similar racket as Force during the Silk Road investigation.The Paycoin saga is finally coming to a close.As you can see in this document, sent to victims of the Josh Garza pyramid scheme called GAW Miners, Paycoin, et cetera, Garza is scheduled to plead guilty to one count of wire fraud on June 1st.

He was previously facing three charges, but high-powered law firm Ballard Spahr did precisely as predicted in our last article, whittling the charges down to one in exchange for a guilty plea.bitcoin to aed chartGarza was initially facing securities fraud charges as well as selling unregistered securities.bitcoin hash to usdEach securities fraud charge carried up to 25 years and a million dollar fine, whereas wire fraud carries a maximum of 20 years penalty as well as fines.bitcoin faucet 5 minutesIt is true that “white collar criminals” don’t often get harsh sentences, but it must be kept in mind that the government views Garza’s actions as especially damaging because he used technology they don’t understand.how to post on bitcointalk

As such, and given the history of cases involving cryptocurrencies (see Ross Ulbricht and the Coin.mx scandal), Garza may just get the book thrown at him.skrill to bitcoin instantThe federal prison system also has a less generous “good time” situation than do many state institutions.ethereum hashrateThe most days per year that Garza could have knocked off his sentence is 54, meaning that if he were given the full 20 years, he would, without a doubt, do 17 of those years.bitcoin 100 oreThat is a long time for anyone, and despite the author’s true detestation of the man, he wouldn’t wish that cage on anyone.bitcoin etf coinNevertheless, people eventually have to answer for their decisions, and often they get exactly what they deserve.cnbc bitcoin vs gold

It will have to be left in the hands of the federal judge who accepts the plea.Yet, it is safe to say that most of the victims would be happy just to get their money back.It is unclear, at this point, if any part of the deal will entail restitution.It should also be noted that no one besides Garza has yet faced criminal charges in the case.Zenminer CEO Eric Capauno would not be inaccurately described as a co-conspirator, acting in full knowledge and collusion with Garza.Only during the downfall of Garza did he bother to inform people of the inaccuracy of claims regarding Zenminer and GAW, in particular the claim that GAW had invested $8 million into his firm.Then there is Paul Vernon, former CEO of Cryptsy, who was so complicit that some believe his exchange actually became insolvent as a result of the Paycoin affair.A scam of this scale could not have been conducted by one man, not in a space where people are quick to do their research and extremely wary of scams.The venerable army of shills who attacked any unkind journalist, the people who openly lied about their returns on GAW investments so as to get others to sign up under their wing of the pyramid, the exchanges that listed Paycoin (most especially Cryptsy), all these are also, by degrees, culpable for the effectiveness of the GAW scam.

There were dozens of people who unwittingly helped Garza, as well, and most of these have come clean in the intervening months and years.Editor’s note: A previous headline referencing a Paycoin scam is inaccurate and has been amended for clarity.Advanced Search Take a Free Trial | Sign In 2 Coin.mx Defendants Reject Plea Deals Ahead Of Trial Try Law360 FREE for seven days Add to Briefcase Printable Version Rights/Reprints Editorial Contacts Related Sections Banking Capital Markets New York Securities Trials White Collar Case Information Case Title Magistrate judge case number: Case Number 1:15-cr-00769 Court New York Southern Nature of Suit Date Filed November 5, 2015 Law Firms Creizman LLC Krovatin Klingeman Government Agencies National Credit Union Administration Law360 UK Read Our Latest UK Legal News & Analysis Read All Stories Get instant access to the one-stop news source for business lawyers Register Now!