Prosecutors presented a case built on false guarantees, sham ventures, and investor funds that were never used as promised. The schemes ran from March 2021 to February 2022, during which Chartraw and an associate controlled multiple companies and communicated with investors via calls, texts, emails, Microsoft Teams, and Zoom.
The DOJ explained:
Trial evidence showed Chartraw directed operations while using aliases including “Leonard” and “Leon.” He told associates he needed to conceal his identity due to a prior fraud conviction, though many investors later learned that Chartraw controlled the businesses and their accounts.
Aliases, Bank Access, and False Statements Helped Drive Nearly $1M in Investor LossesBank records became central to the government’s case. Although Chartraw was not a signatory on Crypto-Pal’s business bank account, evidence showed he repeatedly accessed it to withdraw cash, make purchases, and transfer investor funds into accounts he personally controlled.
The Justice Department noted:
“Chartraw faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count.”
Repayment requests exposed the gap between the promises and the money trail. When investors sought their funds or questioned delays, Chartraw offered excuses, shifted responsibility, or stopped communicating, while victims received neither returns nor repayment of their principal.
