Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Crypto-Fraud Alert: Ohio-Based Cryptocurrency Scammer Pleads Guilty to Wire Fraud

Michael Ackerman admits to stealing over $30 million in investor funds

According to the U.S. Attorney’s Office, Michael Ackerman, of Sheffield Lake, Ohio, pleaded guilty last week to one count of wire fraud in connection with a multimillion-dollar cryptocurrency scam that he orchestrated. Ackerman faces a maximum sentence of 20 years in prison for his misconduct.

In February 2020, the Securities & Exchange Commission filed civil fraud charges against Ackerman alleging that he and two business partners (one of whom was a surgeon) had unlawfully raised funds for a private investment pool dubbed the Q3 Trading Club (“the “Fund”). The Fund targeted physicians through Facebook groups and word of mouth.

In announcing the guilty plea, federal prosecutors stated:

The Fund was an investment club that allowed its members to contribute U.S. dollars, which the investors were told would then be used to invest and trade in Bitcoin and other cryptocurrencies. Ackerman was held out as the Fund’s chief trading officer and personally controlled the Fund’s primary trading account on an online cryptocurrency exchange. Based on figures provided by Ackerman, the Fund claimed that its proprietary trading algorithm was earning approximately 15 percent in profit for investors each month.

In reality, the Fund’s reported performance and overall balances were false, and Ackerman created phony screenshots to fool investors about the Fund’s actual performance.

Prosecutors say that Ackerman stole at least $9 million in investor contributions and used the money to bankroll a lavish lifestyle that included his purchase of multiple pieces of real estate, hundreds of thousands of dollars of Tiffany jewelry, vehicles, travel, and personal security services.

As part of the plea, Ackerman agreed to make restitution of at least $30,667,738.79. Ackerman also agreed to forfeiture of $36,268,515, including the millions of dollars in cash, real estate, and jewelry that were fraudulently obtained from victims or bought with victim funds.

Just days before Ackerman’s guilty plea was announced, the SEC issued an investor bulletin warning investors about crypto and other digital asset investment scams.

The law firm of Meyer Wilson has an active cryptocurrency and digital asset fraud practice group. If you believe that you have been the victim of a crypto or digital asset scam, please contact the experienced investment fraud lawyers at Meyer Wilson for a complimentary consultation.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram