A Connecticut man has been indicted by a federal grand jury for allegedly operating an unlicensed cryptocurrency business that exchanged over $1 million. William McNeilly, 55, of New Haven, faces multiple charges, including operating an unlicensed money transmitting business and making illegal money transactions.
Key Takeaways
- William McNeilly, 55, of New Haven, Connecticut, has been indicted for operating an unlicensed cryptocurrency business.
- McNeilly allegedly exchanged over $1 million in U.S. currency for cryptocurrency from July 2019 to June 2022.
- He faces one count of operating an unlicensed money transmitting business and three counts of making illegal money transactions.
- If convicted, McNeilly could face up to 35 years in prison.
- McNeilly was arrested on June 6, 2024, and is currently free on a $50,000 bond.
The Indictment
The indictment, returned by a New Haven grand jury on June 5, 2024, charges McNeilly with one count of operating an unlicensed money transmitting business, which carries a maximum term of five years in prison if convicted. Additionally, he faces three counts of making illegal money transactions, each carrying a maximum term of 10 years in prison.
Business Operations
Authorities allege that McNeilly owned and operated Global Income Marketplace LLC (GIM) from a storefront in West Haven. According to its Connecticut state registration, GIM was engaged in “website builders programming tech computer repairs and upgrades.” McNeilly also operated Global NuMedia LLC (GNM), a limited liability company registered in Delaware.
Unlicensed Activities
McNeilly allegedly never obtained a license from the state Department of Banking to engage in the business of money transmission. Despite this, he opened several bank accounts in the names of GIM and GNM, as well as a cryptocurrency exchange account in the name of GNM. He used these accounts to exchange customers’ cash, checks, and money orders for cryptocurrency, charging a fee for the service.
Fraudulent Funds
From July 2019 to June 2022, McNeilly allegedly exchanged more than $1 million in U.S. currency for cryptocurrency on behalf of customers throughout the U.S. Authorities claim that McNeilly knew some of the funds involved in his business were derived from fraud schemes. The investigation revealed that cashier’s checks from victims of romance fraud schemes were mailed to GIM and deposited into GIM accounts.
Warnings Ignored
In February 2021, McNeilly was reportedly contacted by TD Bank and informed that a $10,000 wire transfer to GNM was reported as fraudulent. He was also told that he needed a license to operate a money transmission business. Despite this warning and the subsequent closure of GIM and GNM accounts by TD Bank, McNeilly allegedly continued to operate his money transmission business through other bank accounts.
Legal Proceedings
McNeilly was arrested on June 6, 2024, and appeared before U.S. Magistrate Judge Maria E. Garcia in New Haven, where he pleaded not guilty. He is currently free on a $50,000 bond. The case is being investigated by the U.S. Postal Inspection Service.
Sources
- Feds: CT man’s alleged cryptocurrency business exchanged $1M, Hartford Courant.
