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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of West Virginia

FOR IMMEDIATE RELEASE
Tuesday, July 7, 2020

Pennsylvania man admits to bank fraud

WHEELING, WEST VIRGINIA – Randall Joseph Smail, of Jeannette, Pennsylvania, has admitted to bank fraud, U.S. Attorney Bill Powell announced.

Smail, age 23, pled guilty today to one count of “Bank Fraud.” Smail defrauded Pendleton Community Bank of approximately $552,533. Smail created a fictitious account statement from Kraken Bitcoin Exchange, showing he had $640,000,000 in Bitcoin currency that he produced when applying for a loan from the bank, knowing he did not own any Bitcoin currency. He also produced other fictitious paperwork, showing $10,000,000 in another bank that he transferred from his cryptocurrency account, all of which he knew was false. He used these false documents to defraud the bank.

Smail faces up to 30 years of incarceration and a fine of up to $1,000,000.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Danae Demasi-Lemon is prosecuting the case on behalf of the government. The West Virginia State Police investigated.

U.S. Magistrate Judge James P. Mazzone presided.

Topic(s): 
Financial Fraud
Updated July 7, 2020