- Reggie Fowler, former co-owner of the NFL’s Minnesota Vikings, has been sentenced to 75 months in prison for his role in a $700 million cryptocurrency scam.
- Fowler admitted to five federal criminal charges, including wire and bank fraud and conspiracy to operate an unlicensed money-transmitting business.
Reggie Fowler, a former co-owner of the NFL’s Minnesota Vikings, has been sentenced to over six years in prison for his involvement in a $700 million cryptocurrency scam. This development comes after Fowler admitted to five federal criminal charges, including wire and bank fraud and conspiracy to operate an unlicensed money-transmitting business.
Fowler, a businessman from suburban Phoenix, Arizona, was also an early investor in the Alliance of American Football (AAF), a short-lived professional football league that aimed to serve as an alternative to the NFL. However, Fowler admitted to defrauding those associated with the AAF as part of his plea deal.
Prosecutors allege that Fowler, 64, violated federal law by processing hundreds of millions of dollars of unregulated transactions on behalf of cryptocurrency exchanges through a shadow bank. He established Global Trading Solutions LLC, which collaborated with Crypto Capital, a company that facilitated the exchange of digital currencies for cash.
Fowler was accused of opening numerous bank accounts across the U.S. and globally under false pretenses, claiming they were for real estate investment transactions when they were actually intended for cryptocurrency transactions. Prosecutors argue that Fowler played a critical role in a serious criminal enterprise by misleading banks, which could have faced regulatory action for supporting an unlicensed money services business.
In less than 10 months, Fowler processed approximately $750 million in cryptocurrency transactions in various currencies without the necessary licensing required by federal law. U.S. Attorney Damian Williams for the Southern District of New York emphasized the commitment to prosecuting individuals who lie to banks and evade the law to conduct their business.
Fowler was part of a group of investors that bought the Vikings in 2005 before relinquishing his stake in the NFL team in 2014. Despite his financial troubles and accumulated debt, Fowler remained interested in professional football, leading to his involvement with the AAF. However, prosecutors claim Fowler deceived AAF executives about his financial status in exchange for a significant portion of the league.
As part of his sentence, Fowler has been ordered to forfeit $740 million and pay $53 million in restitution to the AAF. This case serves as a stark reminder of the potential risks and legal consequences associated with fraudulent activities in the cryptocurrency industry.
