Latvian Citizen Extradited from Norway Sentenced in Federal Court for Role in Money Laundering Conspiracy
United States Attorney Dennis R. Holmes announced that Nathan Peachey, age 51, of Pennsylvania, convicted for his role in fraud, money laundering, and obstruction of justice conspiracies, was sentenced on Monday, February 14, 2022, by U.S. District Judge Karen E. Schreier.
Nathan Peachey was sentenced to 300 months in custody, followed by three years of supervised release, nearly $11 million in restitution, and forfeiture of a residence in Norway, a luxury vehicle, approximately $4 million in silver coins, and a laptop. He was also ordered to pay $1,200 to the Federal Crime Victims Fund.
“Mr. Nathan Peachey was sentenced to 25 years in federal prison for preying on innocent victims. Peachey, along with his co-conspirators, ran a sophisticated scheme that robbed victims of their life savings, retirement income and other funds, for the sole purpose of enriching himself and his friends,” said IRS Criminal Investigation Special Agent in Charge Tyler Hatcher. “The evidence shown during trial demonstrates that IRS Criminal Investigation special agents partnered with the FBI and the Department of Justice, are the best in the world at tracing ill-gotten funds to anywhere criminals spend or hide them. We will never give up on our relentless pursuit of justice.”
“The defendant’s fraud was built on nothing but empty promises to the victims that they were helping humanity, but in reality he was only helping himself with a new home, silver, and a luxury car in Norway. And for that fraud, he is paying a heavy price and will never be in a position to victimize anyone ever again,” said FBI Special Agent in Charge Michael Paul. “I want to thank the agents, analysts, and prosecutors who worked tirelessly to not only uncover the fraud and build the case that led to this sentencing, but also for their efforts in trying to recover as much money as they could to return to the victims of this scam.”
Defendants Nathan Peachey, John Rick Winer, and others were originally indicted by a federal grand jury on November 5, 2019. A Second Superseding Indictment was filed on October 6, 2020. Peachey and Winer proceeded to trial in November 2021, and the jury returned guilty verdicts on all counts against both defendants. Winer was also scheduled for sentencing on February 14, 2022, but he failed to appear.
According to evidence presented at trial and court documents, Peachey resided in and operated from the State of Pennsylvania and from a suburb of Oslo, Norway. Peachey aided in soliciting millions of dollars from investors in the United States, and he received funds from others who were involved in the fraud scheme. Funds obtained by and through Peachey were, in part, laundered through and into domestic and international bank accounts. After his receipt of funds, Peachey would transfer or wire funds to his co-conspirators, and he also would use funds on personal expenditures.
Winer resided and operated from the State of New Mexico, among other places. Winer recruited individuals from South Dakota and elsewhere to invest in various projects, and he solicited funds that were obtained through the fraud scheme. After his receipt of funds, Winer would transfer or wire funds to his co-conspirators and others known and unknown to the Grand Jury, and he also would use funds on personal expenditures.
As to the scheme to defraud the victims across the country, Peachey and Winer, along with their co-conspirators, informed investors that the monies provided to one or more of the co-conspirators would be used for charitable or humanitarian projects, oftentimes using religion to entice and induce victims into investing money in the scheme. They also made promises that there would be a return on investments. Peachey and Winer informed investors that the monies provided to one or more of the co-conspirators would not be expended on personal expenses. Investor money was not used for charitable or for humanitarian projects, and investors never received a return on investments relating to the monies provided to Peachey, Winer, or their co-conspirators. The purpose of the conspiracy was to enrich the co-conspirators, all of whom amassed nearly $13 million, and then spent the fraud proceeds on a luxury residence located in a suburb of Oslo, Norway, renovation costs on the house, a Mercedes Benz, nearly $4 million in silver, travel, and personal expenses. This fraud scheme impacted victims from around the United States, including South Dakota, Minnesota, Arizona, New Mexico, Florida, Colorado, Pennsylvania, and North Carolina.
Peachey, Winer, and their co-conspirators utilized, independently or jointly, entities to perpetrate the fraud scheme, including, but not limited to: AG Enterprises, L.L.C.; House of Winer; Jacobs Provision Trust; The Joseph Project; Jericho Outreach; Jericho Outreach – Norway; Christian Charity Foundation; and G47 Initiative. These entities were fake and used to receive fraud proceeds and launder money.
Once Peachey and Winer learned about the investigation in South Dakota and elsewhere, they also conspired to obstruct justice. Peachey and Winer conspired to corruptly obstruct, influence, and impede the investigation of the below-listed agencies and various court proceedings.
This case was investigated by the following entities:
- Internal Revenue Service Criminal Investigation;
- Federal Bureau of Investigation;
- ØKOKRIM, the Norwegian National Authority for Prosecution and Investigation of Economic
and Environmental Crime, Oslo, Norway;
- Oslo, Norway, Police Department;
- Department of Justice’s Office of International Affairs; and
- South Dakota Division of Criminal Investigation
Assistant U.S. Attorneys Jeremy R. Jehangiri and Ann M. Hoffman prosecuted the case.
Peachey was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence of imprisonment.