Bitcoin felony - theme
Two convicted in cryptocurrency and penny stock investment scheme
BROWN COUNTY, Wis. (WBAY) - Two people have been convicted in Brown County for a scheme in which they promised victims large gains through investments of cryptocurrency and penny stocks, but instead used the funds on personal expenses.
Malorie F. Berceau was sentenced to three-and-a-half years in state prison on three felony counts of theft. She was ordered to pay $397,304 in restitution to victims.
Berceau’s partner, Travis Ebert, was sentenced to five years of probation for two counts of felony theft. Ebert was also ordered to pay restitution.
The convictions come after an investigation by the Wisconsin Department of Financial Institutions.
Berceau and Ebert ran the company MFB Investments, LLC. DFI says they offered to trade in foreign exchange currency, cryptocurrency and penny stocks to “generate large gains in investors’ accounts.” However, they were using investor funds for personal expenses and to pay back earlier investors in the scheme.
“Berceau also represented to several investors that she was a registered financial professional, when in fact she was not, and generated falsified account statements to make her investors believe the operation was legitimate,” reads a statement from DFI.
The investigation wrapped in 2017 and charges were filed in Brown County in 2018.
Berceau and Ebert pleaded no contest to felony charges in 2019. They were convicted and sentenced.
“DFI is grateful to the Brown County District Attorney’s office for their diligent prosecution of this matter,” said DFI Secretary Kathy Blumenfeld. “This case illustrates the importance of always checking whether your financial professional is properly registered to give investment advice. If just one investor had checked with DFI’s Division of Securities, they would have known immediately that Berceau and Ebert were not registered as financial professionals or affiliated with any broker-dealer or investment adviser. Never assume someone is registered – you can protect your entire retirement portfolio with a simple phone call. Investors can safeguard themselves and others by taking time to research both the investment product and the person selling it.”
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