An Arizona resident has pleaded guilty to money laundering and conspiracy to obstruct justice for his involvement in a fraudulent investment scheme that caused over $13 million in losses. Vincent Anthony Mazzotta Jr., 54, also known by several aliases including “Vincent Midnight,” “Delta Prime,” and “Director Vinchenzo,” admitted to defrauding investors by promising high returns from cryptocurrency trading using artificial intelligence-powered automated trading robots.
Mazzotta, who previously lived in Hollywood Hills but now resides in Arizona, entered his plea before United States District Judge Dale S. Fischer. Sentencing is set for December 15, where he faces up to 10 years in federal prison for money laundering and up to five years for conspiracy to obstruct justice.
According to court documents, Mazzotta and co-defendant David Saffron lured victims with the promise of short-term, high-yield profits through investments in companies such as Mind Capital and Cloud9Capital. They further created a fictitious government entity called the Federal Crypto Reserve (FCR) and solicited additional funds from victims under the pretense of hiring FCR to investigate crypto-investment firms that had disappeared with their money.
United States Attorney Bill Essayli commented on the risks associated with new forms of investment: “New types of investments such as Bitcoin and other cryptocurrencies may seem alluring, but they also carry the risk of criminals using their relative novelty to prey on victims. I encourage investors to be skeptical when approached by anyone promising novel riches. An ounce of prevention is worth a pound of cure.”
Acting Assistant Attorney General Matthew R. Galeotti stated, “Vincent Mazzotta defrauded investors in a sophisticated cryptocurrency scheme and then doubled down by using a fake government entity to further victimize those who had entrusted him with their money. Combatting fraud in digital assets is critical to the Criminal Division’s efforts to vindicate victims’ interests and to keep bad actors out of the crypto markets. The Department and its law enforcement partners will aggressively pursue and hold accountable fraudsters who use the veneer of legitimacy and public trust to steal from investors.”
Special Agent in Charge Tyler Hatcher of IRS Criminal Investigation (IRS-CI) Los Angeles Field Office said, “The defendants in this case purported to be U.S. governmental entities to legitimize their scams, before ultimately attracting the scrutiny of actual federal authorities who were special agents from IRS Criminal Investigation. Today’s admission of guilt is another example of our resolve and unique ability to unravel complex financial transactions regardless of how sophisticated the scheme may be.”
Court records show that after Saffron’s arrest, Mazzotta conspired with others to destroy evidence at Saffron’s apartment—including an iPad and contents from a personal safe—and falsified business records at Runway Beauty Inc., attempting to hide his involvement from investigators.
The case is being investigated by IRS Criminal Investigation. Prosecution is led by Assistant United States Attorney James C. Hughes from the Major Frauds Section along with Justice Department Trial Attorneys Theodore Kneller and Siji Moore from the Fraud Section.
