Businessman Christopher Scanlon Indicted on Federal Charges for Unlicensed Crypto Transactions
Christopher James Scanlon, a Florida-based businessman, has been charged with running an unlicensed cryptocurrency and fiat currency transmitting business, the U.S. Department of Justice (DOJ) revealed. Scanlon, originally from Utah, was apprehended at Miami International Airport on Oct. 10 and has since pleaded not guilty in Newark federal court.
Scanlon, the CEO of Aurae Lifestyle and Club Swan, oversaw entities like PMA Media Group and AU Card LLC, offering both cryptocurrency and traditional financial services. However, prosecutors allege that these businesses failed to register as money transmitters with FinCEN, a violation of federal law.
Between 2015 and 2019, Scanlon reportedly conducted financial transactions for affluent clients without proper regulatory authorization, including engaging in off-the-books cryptocurrency dealings. Court documents detail a particular incident where Scanlon facilitated a “Ghost” transaction for a client embroiled in a cryptocurrency mining scheme. The client explicitly requested the transaction be kept off the record, with Scanlon responding humorously with a “Boo.” The DOJ stated, “Scanlon and the customer communicated about concealing the transaction from the customer’s account ledger as a ‘Ghost’ transaction.”
It is important to remember that all charges against Scanlon are currently allegations, and he is entitled to the presumption of innocence until proven guilty. The DOJ specified that the conspiracy charge carries a maximum penalty of five years in prison and a fine of up to $250,000 or twice the financial gain to the defendant or loss to the victims, whichever is greater.