- A recent press release states that three former Cred executives have been charged for misleading investors.
- The charges against the defendants include conspiracy, wire fraud, and engaging in illicit financial transactions.
- The executives charged by the Federal grand jury are Daniel Schatt, Joseph Podulka, and James Alexander.
A recent press release revealed that a Federal grand jury charged three former executives of Cred LLC, a San Francisco-based financial services firm that filed for Chapter 11 bankruptcy in 2020. The executives, Daniel Schatt, Joseph Podulka, and James Alexander, were charged with conspiracy, wire fraud, and engaging in illicit financial transactions.
The allegations against these executives were set out in two separate indictments. The first indictment charged Daniel Schatt, Cred’s co-founder and former CEO, and Joseph Podulka, former CFO. They were charged with conspiracy, thirteen counts of wire fraud, and money laundering.
Similarly, the second indictment charged James Alexander, former Chief Capital Officer, with conspiracy, money laundering, wire fraud, and other charges. According to the press release, these executives began making false and fraudulent statements, misleading customers and investors.
Notably, United States Attorney Ismail Ramsey, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley of the Oakland Field Office announced the charges against the defendants. U.S. Attorney Ismail Ramsey stated,
“The Northern District of California is home to many of the nation’s most innovative businesses. Maintaining a market for continued prosperity requires rooting out those who use fraud as a substitute for success. This prosecution demonstrates our determination to keep our markets free of fraudsters and safe for investors.”
As per the indictments, the defendants lured customers to make investments through false promises. They reportedly promised to return a significant yield on the crypto investments. At the time of Cred’s collapse, the customers reportedly suffered a total loss of $150 million in crypto.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
