WASHINGTON: Kunal Mehta, an alleged co-conspirator in the Malone Lam money-laundering case in the United States, pleaded guilty on Monday (Nov 17) to RICO conspiracy and conspiracy to launder monetary instruments.
As part of the plea deal, Mehta admitted to laundering stolen cryptocurrency and converting it into hard cash. That money was then spent extravagantly by the alleged members of the criminal enterprise, which prosecutors say was spearheaded by Singaporean Malone Lam.
Mehta, 45, arrived in the DC courthouse on Monday wearing a dark blue jumpsuit, his right arm in a sling. As he entered the courtroom, he waved and threw a kiss to his brother, who was in the public gallery.
During the 90-minute hearing, the government lawyer Kevin L Rosenberg went paragraph by paragraph, reading aloud the allegations against Mehta, to which he then acknowledged his crimes.
He was known as “papa” and “the accountant” in the alleged 13-member crypto-crime ring and he said in court that he holds a master’s degree in business.
Mehta’s job in this alleged enterprise was to launder millions of dollars in stolen cryptocurrency for which he charged a 10 per cent fee.
That crypto was then converted into hard cash and sent to other members, including, according to the government, Malone Lam.
Mehta acknowledged that at one point, he had hand-delivered about half a million dollars to Lam and his associates. Mehta also admitted to stuffing money into plush toys that were then sent to alleged members.
Prosecutors accused the enterprise of concocting a very elaborate scheme to steal cryptocurrency that was worth more than US$260 million at the time. This included an unnamed victim in Washington, DC, who prosecutors said was swindled out of 4,100 Bitcoins, which were valued at US$245 million at the time.
Prosecutors said the laundered money was spent lavishly, including on a fleet of exotic cars ranging in value from US$100,000 to up to US$3.8 million.
The stolen money was also allegedly spent on expensive jewellery, luxury handbags and clothing, as well as private jets and rental homes. Prosecutors said up to US$500,000 was spent at a nightclub in a single night.