Former El Dorado County resident found guilty in nearly $1 million crypto fraud
After an eight-day trial, a former El Dorado County resident was found guilty Thursday in a federal case regarding a series of fraudulent schemes.
Amid the nearly $1 million scandal, Daniel Chartraw, formerly of South Lake Tahoe, was accused of controlling companies, including Crypto-Pal LLC. Prosecutors from the U.S. Attorney’s Office for the Eastern District of California said he and other individuals acting on his behalf represented Crypto-Pal to investors as a cryptocurrency trading company with guaranteed high returns andno risk.
Chartraw, 53, worked with investors via phone calls, text, email and virtual meetings, according to the U.S. Attorney’s Office, often using “Leonard” or “Leon” as an alias.
Prosecutors say Chartraw, who also has ties to Lodi, built trust through personal and professional relationships by using false account statements to misrepresent data for additional investment funds.
“When investors attempted to recover their money or questioned delays, he provided excuses, deflected responsibility, or stopped communicating altogether,” the U.S. Attorney’s Office wrote in a statement.
Chartraw regularly used Crypto-Pal’s bank account to withdraw cash, make purchases and transfer investor funds into account he personally controlled, according to the Attorney’s Office, causing a total loss to investors of nearly $1 million.
Senior U.S. District Judge William Shubb is expected to sentence Chartraw on Sept. 28, according to a release. He faces up to 20 years in prison.
