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 money transmitting business.
- McNeilly allegedly exchanged over $1 million in U.S. currency for cryptocurrency from July 2019 to June 2022.
- He faces up to five years in prison for operating an unlicensed business and up to 10 years for each count of making illegal money transactions.
- McNeilly was arrested on June 6, 2024, and is currently free on a $50,000 bond.
The Indictment and Arrest
William McNeilly was indicted by a New Haven grand jury on June 5, 2024, and arrested the following day. He appeared before U.S. Magistrate Judge Maria E. Garcia in New Haven, where he pleaded not guilty and was released on a $50,000 bond.
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.” Additionally, McNeilly and another individual operated Global NuMedia LLC (GNM), a limited liability company registered in Delaware.
Alleged Illegal Activities
McNeilly allegedly never obtained a license from the state Department of Banking to engage in money transmission. Despite this, he opened several bank accounts in the names of GIM and GNM and 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.
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 were derived from fraud schemes, including romance fraud schemes, where cashier’s checks from victims were mailed to GIM and deposited into GIM accounts.
Warnings and Continued Operations
In February 2021, TD Bank contacted McNeilly, informing him that a $10,000 wire transfer to GNM was reported as fraudulent and 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 his operations through other bank accounts.
Investigation
The case was investigated by the U.S. Postal Inspection Service, leading to the indictment and arrest of McNeilly. If convicted, he faces significant prison time for his alleged illegal activities.
Sources
- Feds: CT man’s alleged cryptocurrency business exchanged $1M, Hartford Courant.
