A federal grand jury in Phoenix returned a 55-count indictment against Luis Ortega, 42, of Litchfield Park, and Jeremie Sowerby, 45, of Fountain Hills, for Wire Fraud and Transactional Money Laundering.
According to the Department of Justice, the indictment alleges that Ortega and Sowerby scammed hundreds of victims out of millions of dollars in a cryptocurrency investment scheme. Under the guise of three entities, Ortega and Sowerby marketed a “risk-free” investment opportunity in “leases” of purported Bitcoin mining machines located abroad (Now Mining); a direct investment in Bitcoin mining machines in Arizona (VIP Mining); and a real estate and technology company through which investors could purchase custom-built container houses using the defendants’ proprietary “Millennium” cryptocurrency. Each entity involved the promise of lavish giveaways and profits that could be accessed and liquidated immediately. In reality, the entire scheme was based on lies. Ortega and Sowerby siphoned the victim funds to bank accounts they controlled and used the money for themselves, including for the purchase of properties and a new vehicle, and extensive cash withdrawals.
A conviction for wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or both. A conviction for transactional money laundering carries a maximum penalty of 10 years in prison and a fine of up to $250,000, or both.