Montana resident Randall V. Rule was found guilty of conspiracy to launder over $2.4 million through cryptocurrency following a three-day U.S. District Court trial.
Case Details
Randall V. Rule, formerly of Kalispell, Montana, was convicted on all counts by a jury under U.S. District Judge Jeremy D. Kernodle. Rule was charged alongside Gregory C. Nysewander from Irmo, South Carolina, in a 2022 federal indictment.
Fraud Methods
Prosecutors stated that Rule and Nysewander facilitated the conversion of funds from scams, including romance fraud and email compromises, into cryptocurrency. These funds were then transferred to accounts controlled by co-conspirators. Romance scams involved deceiving victims using fake personal connections to gain their trust and extract money. Fraudsters also utilized fake websites to trick victims. To evade detection, Rule and accomplices misrepresented transaction details.
Court proceedings
Rule faces up to 20 years in prison for each money laundering charge and up to five years for conspiracy to violate the Bank Secrecy Act. The sentencing date will be set following an investigation.
The conspiracy case highlights the growing prevalence of financial crimes involving cryptocurrency and the authorities' active measures to combat such schemes.
