Beyond the prison time, the court ordered him to pay back more than $10 million to the people he cheated.
A Fake Portfolio Of MasterpiecesReports indicate the group never actually owned these pieces. Dunlap had signed a purchase agreement for the art but never provided the funds to complete the sale.
That did not stop him from telling potential buyers that the coins were safe and stable because of the high-value assets held in a private trust.
The deception extended to the natural resources sector. Dunlap told investors that the coin was also backed by $2 billion in gold.
HOUSTON MAN SENTENCED TO 23 YEARS IN FEDERAL PRISON FOR $20 MILLION CRYPTOCURRENCY FRAUD SCHEME
He promised people they could see returns as high as 224,923% without any risk to their initial capital. These wild claims helped the group bring in money from nearly 1,000 different victims, with total losses reaching around $20 million.
Luxury Cars And Legal DefianceWhile investors waited for their massive returns, Dunlap used the money to fund a lavish lifestyle. Data shows he spent $215,000 of the stolen funds on a Ferrari. Other money went toward additional luxury vehicles and personal expenses.
Even as federal regulators moved in, Dunlap refused to stop the operation. After the Securities and Exchange Commission secured an order to freeze his assets, he continued to hold webinars and pitch the scam to new targets. This defiance led to a civil contempt charge before his criminal trial even began.
He even attempted to put a “liens” on the government officials who were prosecuting the case. These tactics failed to slow down the legal process, and the jury eventually found him guilty of the fraud conspiracy.
Featured image from AP Images/European Union-EP, chart from TradingView
