by A man once known in Hollywood circles as “Vincent Midnight” and “Director Vinchenzo” has pleaded guilty to federal charges in connection with a cryptocurrency investment scheme that defrauded victims out of more than $13 million.
Key Details of the Case:
- Defendant Information:
Vincent Anthony Mazzotta Jr., 54, formerly of Hollywood Hills and now living in Arizona, pleaded guilty to one count of money laundering and one count of conspiracy to obstruct justice. - Charges and Penalties:
Mazzotta faces up to 10 years in federal prison for money laundering and up to five years for obstruction of justice. Sentencing is scheduled for December 15 before U.S. District Judge Dale S. Fischer. - Nature of the Fraud Scheme:
Prosecutors allege that Mazzotta and co-defendant David Saffron lured investors with false claims of high returns from automated cryptocurrency trading platforms under companies like Mind Capital and Cloud9Capital.
They promised the investments would be handled by artificial intelligence-powered trading bots. In reality, they ran a Ponzi-style scheme and used the funds for personal expenses. - Use of Fake Government Agency:
After their original companies collapsed, the duo created a fictitious agency named the Federal Crypto Reserve (FCR). They told victims that the FCR would investigate the failed companies, despite being the ones who had operated them.
This move allowed them to solicit additional funds under false pretenses. - Government Statements:
- Acting Assistant Attorney General Matthew R. Galeotti described the scheme as a “sophisticated cryptocurrency scam” that further harmed victims with the fake FCR agency.
- U.S. Attorney Bilal A. Essayli warned investors to be cautious with emerging investment technologies, noting the risks of fraud in new markets like cryptocurrency.
- Obstruction of Justice:
Following Saffron’s arrest, Mazzotta attempted to obstruct the federal investigation. This included:- Destroying evidence
- Removing an iPad and the contents of a safe from Saffron’s apartment
- Falsifying financial documents tied to his company, Runway Beauty Inc., to hide his involvement
This case highlights growing concerns over fraudulent activity in the cryptocurrency space, with authorities urging the public to exercise caution before investing in emerging financial technologies.
