Aurelien Michel is a French national previously residing in the United Arab Emirates (UAE). He was found guilty conspiring to commit wire fraud at a federal courthouse in Brooklyn, New York. This admission of guilt relates to his involvement in a scheme that defrauded purchasers of “Mutant Ape Planet” NFTs.
The plea took place in front of United States Magistrate Judge Vera M. Scanlon, with Michel now facing a potential five-year prison sentence and agreeing to forfeit $1.4 million. These charges were formally filed against Michel in January 2023.
Joint Announcement by Law Enforcement Agencies
Breon Peace is the United States Attorney for the Eastern District of New York. Ivan J. Arvelo is the Special Agent-in-Charge at Homeland Security Investigations (HSI) in New York. Thomas Fattorusso is the Special Agent-in-Charge at Internal Revenue Service-Criminal Investigation (IRS-CI) in New York. They made a joint announcement about the guilty plea.
In acknowledging his guilt, Michel admits to participating in a conspiracy to defraud individuals eager to partake in the emerging digital asset market, as stated by United States Attorney Breon Peace. He emphasizes the commitment of the office to hold those accountable who exploit the rapid advancements in the digital asset space for large-scale frauds, with a priority on protecting the investing public.
Law Enforcement Agencies: HSI’s Vigilance in Safeguarding Investors
Various law enforcement agencies collaborated and offered support in the investigation and prosecution, including the New York Police Department, U.S. Customs and Border Protection, the U.S. Postal Inspection Service, Port Authority of New York and New Jersey Police, and Nassau County Sheriff’s Department.
Ivan J. Arvelo, Special Agent in Charge of HSI New York has highlighted how Michel enticed investors with promises of capitalizing on the NFTs trend, only to abandon the project after accumulating nearly $3 million in what’s described as a ‘rug-pull scheme.’ He emphasized HSI’s vigilance in safeguarding individuals from unscrupulous actors seeking to exploit well-meaning investors amidst evolving investment landscapes.
IRS-CI’s Strong Stance Against Deception and Greed
Thomas M. Fattorusso is a Special Agent in Charge of IRS-CI New York, expressed disdain for Michel’s misleading actions, turning investors’ dreams into nightmares of deception and losses. He stressed that such greed could not be excused, and Michel’s guilty plea marks a step closer to facing the consequences.
Prosecution of the Case: Details of False Advertising and Deliberate Deception
According to court documents and details presented during the plea, Michel and his collaborators engaged in false advertising of the NFTs. They promised purchasers various rewards and benefits to enhance demand and value. However, they deliberately failed to fulfill these promises, diverting millions for personal gain while assuring buyers that the benefits were forthcoming.
Assistant United States Attorneys Drew G. Rolle and Dylan A. Stern from the Office’s Business and Securities Fraud Section are prosecuting the case, with support from Paralegal Specialist William Daniels.
