A former attorney from Coral Gables, Mark S. Scott, has begun serving a 10-year sentence for his involvement in a massive global cryptocurrency fraud that allegedly defrauded investors out of billions of dollars. Scott commenced his sentence at a federal prison in Miami earlier this month after a lengthy legal battle that included a trial and multiple appeals.
In 2018, Scott was indicted by federal prosecutors in New York on charges of money laundering and bank fraud. His conviction came six years later, but he was initially allowed to remain at home with an ankle monitor while his legal team sought to challenge the ruling.
Scott, a one-time partner at the law firm formerly known as Locke Lord (now Troutman Pepper Locke), was charged primarily for his role in facilitating the schemes of Ruja Ignatova, a Bulgarian émigré known as the “Queen of Cryptocurrency.” Ignatova’s company, OneCoin, is alleged to have operated a Ponzi scheme that swindled investors out of around $4 billion, of which Scott reportedly laundered approximately $400 million.
Federal prosecutors contended that Scott set up several private equity investment funds in 2016 in the British Virgin Islands to handle illicit funds. Assistant U.S. Attorney Julieta V. Lozano informed the jury that Scott “cleaned the fraud money that he knew was dirty” by establishing fake investment funds and deceiving financial institutions into believing that OneCoin’s proceeds were legitimate earnings.
The funds Scott managed, referenced by prosecutors as the “Fenero Funds,” were associated with fictitious investments and served as a cover for transferring ill-gotten gains back to Ignatova. It was alleged that Scott received a staggering $50 million in compensation from Ignatova for his services in facilitating this complex scheme.
Current records indicate that Scott is an inmate at FCI Miami, a low-security facility situated near Zoo Miami. In addition to his prison sentence, a federal judge mandated that Scott forfeit multiple luxury properties acquired using the laundered funds, totaling more than $5 million in assets. These include various bank accounts, two Porsche vehicles, and a lavish seven-bedroom seaside mansion located in Cape Cod, Massachusetts.
Meanwhile, Ruja Ignatova eludes capture and is wanted on charges of wire and securities fraud along with money laundering. She disappeared in late 2017, with her last known appearance marked by a flight from Sofia, Bulgaria, to Athens, Greece. The FBI has since placed her on its list of Ten Most Wanted criminals and is offering a reward of up to $5 million for any credible information leading to her arrest.
