1. Fraud Penalty Defense Case in New York – Client’s Background and Allegations
The client, a small business owner, sought our firm's help after being accused of fraud by friends and acquaintances who invested in an overseas cryptocurrency venture.
The charges, likely classified as Grand Larceny or Scheme to Defraud (Felonies), could have resulted in significant state prison time.
The complainants alleged that the client misused the investment funds for personal purposes, causing financial harm to investors.
Because New York fraud liability requires proof of intentional deception, we immediately focused on establishing the true purpose of the funds and the client's actual state of mind.
The Accusation of Cryptocurrency Fraud
The accusation was that the client solicited investments from several people for an overseas cryptocurrency trading platform.
However, the client had limited knowledge of the high-risk trading method and suffered substantial financial losses.
The complaint also stated that the client used the funds for personal purposes instead of investing as promised, which led to the charges of fraud.
Our firm gathered all bank activity and accounting records to determine whether the funds were ever diverted for private use.
2. Fraud Penalty Defense Case in New York – Key Legal Issues and Strategy
The central legal issue in this case was whether the client had the intent to defraud the investors, a key element in fraud cases.
Under New York Penal Law § 190.65 (Scheme to Defraud), the prosecution must prove that the accused knowingly deceived investors with the intent to profit personally.
Our criminal defense law firm focused on showing that the client lacked the requisite criminal intent to steal or personally benefit from the funds.
Dissecting the Allegation of Fraud
The client was accused of misusing investment funds, but our defense focused on the fact that:
• The client was genuinely unaware of the high risks involved in the cryptocurrency platform.
• They had not personally profited from the funds.
• All funds were either invested or used for legitimate business-related expenses, not for personal use.
Our defense demonstrated that the client’s actions were more about reckless mismanagement than fraudulent intent.
3. Fraud Penalty Defense Case in New York – Defense Strategy and Legal Approach
Our criminal defense law firm utilized a comprehensive legal defense strategy to counter the fraud allegations.
We worked tirelessly to show that there was no fraudulent intent and that the accusations were based on misunderstandings of the client’s actions.
Strategy 1: Lack of Intent to Defraud
Our defense strategy emphasized that the client’s actions were not motivated by personal gain, but rather the result of poor investment decisions and a lack of knowledge about cryptocurrency markets.
We demonstrated that:
• The client did not take any personal benefit from the funds.
• The funds were either used for legitimate business purposes or invested back into the company.
Strategy 2: Cooperation and Remorse
Our team highlighted the client’s cooperation throughout the investigation and remorse for the situation.
We pointed out that the client:
• Acknowledged the poor decisions made.
• Made restitution to investors by offering partial refunds where possible.
• Took responsibility for the situation, showing a willingness to correct mistakes.
4. Fraud Penalty Defense Case in New York – Case Outcome
In the end, our criminal defense law firm secured a suspended sentence for the client, avoiding any jail time.
The court recognized that the client’s actions, while reckless, did not rise to the level of intentional fraud or personal profit, allowing for mitigation during sentencing.
As a result, the client was able to continue with their professional life without a period of incarceration.
Suspended Sentence as a Legal Victory
The outcome of the case was a suspended sentence (Sentence of Probation), which meant that the client would not serve time in jail, provided they met certain conditions, such as:
• Continued restitution to affected investors.
• Compliance with any probation terms set by the court.
• Maintaining good behavior during the probationary period.
This was a huge win compared to what could have been a much harsher penalty.
21 Nov, 2025
