A semi-pro rugby player has been hit with nine counts of wire fraud in an alleged Ponzi scheme centered on bogus cryptocurrency mining operations. Shane Donovan Moore, 36, of Seattle, is accused of defrauding investors through his company, Quantum Donovan LLC, as per an indictment unsealed on Monday. The U.S. Attorney's Office claims Moore hoodwinked investors by promising hefty daily returns based on non-existent crypto-mining machines.
In the classic style of a Ponzi scheme, the indictment alleges that the investments from new backers were used to pay off prior investors. Moore is said to have lived a high life on the investor's dime, splurging over $820,000 on cryptocurrencies and shuttling over $1 million between different Coinbase accounts, according to a statement from the U.S. Attorney's Office.
"Cryptocurrency investors can fall victim to all the same fraud tactics as any investor. Mr. Moore used a ‘Ponzi scheme,’ – a fraud that has been around for decades – and uses new investor money to pay off older investors until the scheme collapses," U.S. Attorney Tessa M. Gorman outlined. The FBI has identified 38 victims thus far but suspects there are more out there, urging them to come forward.
Trusted by his acquaintances from the rugby field, Moore recruited investors from states including Utah, Oregon, Connecticut, New Jersey, and Washington. Court documents reveal that despite his claims of operating a lucrative mining venture, Moore's lavish expenditures were funded by the scheme. If convicted, the charge of wire fraud could snag Moore up to 20 years behind bars. Nonetheless, Moore stands innocent until proven guilty as the indictment contains only allegations at this point.
The case, now in the hands of the FBI for investigation, is steered by Assistant United States Attorney Brian Wynne for prosecution.
