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Theft

California Man Sentenced to 51 Months in Prison for $36.9 Million Digital Asset Investment Scam

Strategic Insights

— 2 min read

A California man, Shengsheng He, was sentenced to 51 months in federal prison for his role in laundering more than $36.9 million from victims in an international digital asset investment scam conspiracy. He was also ordered to pay $26,867,242.44 in restitution to victims. The scam, carried out from centers in Cambodia, targeted American investors by promising high returns on digital asset investments, but in fact, stole nearly $37 million from U.S. victims. The case highlights the proliferation of foreign scam centers, and the Justice Department's commitment to bringing to justice those who steal from American investors.

Key Takeaways:

  • Shengsheng He, 39, of La Puente, California, was sentenced to 51 months in federal prison for his role in laundering $36.9 million from victims in an international digital asset investment scam conspiracy.
  • He was also ordered to pay $26,867,242.44 in restitution to victims.
  • He was part of an international criminal network that induced U.S. victims to transfer funds to accounts controlled by co-conspirators who then laundered victim money through U.S. shell companies, international bank accounts, and digital asset wallets.
  • Co-conspirators residing overseas would contact U.S. victims directly through unsolicited social media interactions, telephone calls, text messages, and online dating services to gain the victims' trust.
  • Over $36.9 million in victim funds were transferred from U.S. bank accounts controlled by the co-conspirators to a single account at Deltec Bank in the Bahamas.
  • Eight co-conspirators have pleaded guilty so far, including Daren Li, a national of China and St. Kitts and Nevis, and Lu Zhang, a Chinese national illegally in the United States.
  • Li and Zhang each pleaded guilty to conspiracy to commit money laundering, while Somarriba and Su each pleaded guilty to conspiracy to operate an unlicensed money transmitting business.

Statistics:

  • $36.9 million: amount laundered from victims in the international digital asset investment scam conspiracy
  • 51 months: prison sentence for Shengsheng He
  • $26,867,242.44: restitution ordered to be paid by He to victims
  • 8: number of co-conspirators who have pleaded guilty
  • 180: number of cybercriminals convicted by CCIPS since 2020
  • $350 million: amount of victim funds secured through court orders

Sources:

  • Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department's Criminal Division
  • Acting U.S. Attorney Bill Essayli for the Central District of California
  • U.S. Department of Justice press release (no date provided)
  • CCIPS press release (no date provided)

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