U.S. Promoter of Foreign Cryptocurrency Companies Sentenced to 60 Months in Prison for His Role in Multi-Million Dollar Securities Fraud Scheme
Earlier today, in federal court in Brooklyn, Joshua Turney, formerly a registered broker at Global Arena Capital Corp. (“Global”), a now defunct brokerage firm located in New York City, pleaded guilty before United States District Judge Eric N. Vitaliano to conspiracy to commit securities fraud for engaging in unauthorized trading in his customers’ accounts. When sentenced, Turney faces up to five years in prison, as well as restitution, criminal forfeiture and a fine.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty plea.
“With today’s guilty plea, Turney has been held accountable for abusing the trust of his customers and for engaging in unauthorized trades to unjustly enrich himself,” stated Acting United States Attorney DuCharme. “This Office will continue to work vigilantly alongside our law enforcement partners to protect the integrity of financial markets.” Mr. DuCharme expressed his grateful appreciation to the Securities and Exchange Commission, New York Regional Office (SEC), for its significant cooperation and assistance during the investigation.
“The scheme Turney and his co-conspirators are accused of today is fairly straightforward. As alleged, they pushed through more than $100 million in customer trades, most of which were unauthorized, for the sole purpose of generating commission for themselves. In Turney’s case, reaping the benefits of his proceeds, however, won’t be quite as simple now that he’s been charged with a federal crime,” stated FBI Assistant Director-in-Charge Sweeney.
According to court filings and facts presented at the plea hearing, between April 2015 and June 2015, shortly before Global ceased operations, Turney and his co-conspirators engaged in a scheme to defraud Global customers by purchasing and selling securities without the customers’ prior authorization or knowledge. Approximately 4,500 trades were executed in approximately 360 customer accounts during this time period, most of which were unauthorized. The principal value of these transactions was approximately $106 million, and the trades generated over $2.44 million in commissions and fees for Global.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Shannon C. Jones is in charge of the prosecution.
San Diego, California
E.D.N.Y. Docket No.-20 CR-359 (ENV)
United States Attorney’s Office