United States of America v. Robert Dunlap

Chicago, Illinois, criminal defense lawyer represented the Defendant charged with fraud.

Robert Dunlap claimed to operate a cryptocurrency business that sold a purported digital asset called “Meta-1 Coin” through a “Meta-1 Coin Trust.” Dunlap made numerous false and misleading statements to potential and actual investors, including claims that the Meta-1 Coin was backed by as much as $1 billion in art and $44 billion in gold. Dunlap falsely claimed that an accounting firm had audited the gold and certified its value. The purported art collection was alleged to have included works by Pablo Picasso, Salvador Dali, Vincent Van Gogh, and other acclaimed artists. Dunlap created bogus legal documents to conceal the fact that he did not actually possess the gold or art.

Dunlap’s fraud scheme caused nearly 1,000 investors to lose more than $20 million. Many of the victim investors lost all of their savings.

A federal jury in the Northern District of Illinois last year convicted Dunlap, 55, of Houston, Texas, on mail fraud charges. On Tuesday, U.S. District Judge LaShonda A. Hunt sentenced Dunlap to 23 years in federal prison and ordered him to pay restitution to his victims.

The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Adam Jobes, Special Agent-in-Charge of IRS Criminal Investigation in Chicago. Valuable assistance was provided by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office for the Eastern District of Virginia.

“Defendant lied to investors for years telling them that he had created a safe investment for them,” Assistant U.S. Attorneys Jared Hasten and Paige Nutini argued in the government’s sentencing memorandum. “Over the years, defendant was unrepentant and his lies became bigger. Would-be criminals planning to engage in similar conduct need to know that such actions will be met with a serious repercussion that includes loss of one’s liberty for an extended period of time.”

“Robert Dunlap didn’t just take money—he took years of hard work, trust, and financial security from his victims,” said IRS-CI SAC Jobes. “He used lies and deception to pull in millions, leaving some investors with nothing. Crimes like this don’t just hit bank accounts—they upend lives. This 23-year sentence reflects the depth of that harm and sends a clear warning: Those who exploit others for personal gain will be found, and they will face serious consequences.”

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Cryptocurrency is a decentralized digital currency built on blockchain technology that operates independently of governments or banks. It is used for peer-to-peer payments, investments, and trading, with transactions recorded on secure, public ledgers.

Decentralized Nature: Unlike traditional currencies, crypto is generally not backed or controlled by any central bank or government.

Blockchain Technology: These assets run on distributed digital ledgers that verify and record transactions without a centralized intermediary.

Virtual Presence: Cryptocurrency exists only in digital form; there are no physical coins or notes.

Volatility: Cryptocurrency values are volatile and change rapidly based on supply and demand, with no guarantee of value retention.

How is Cryptocurrency Used?

Investments and Trading: Many users buy crypto as a speculative investment or trade it on exchanges like Coinbase or Binance, aiming to profit from price fluctuations.

Peer-to-Peer Payments: It allows for the direct transfer of funds between individuals without a bank, often used for online transactions.

Digital Wallets: Cryptocurrency is stored in, and sent from, digital "wallets".

Smart Contracts: Many networks (like Ethereum) support smart contracts, which are automated agreements that execute when conditions are met.

How is Cryptocurrency "Sued" (Legal/Regulatory Action)?

Unregistered Securities: The SEC and state authorities sue platforms for offering unregistered securities (investment contracts) and failing to register as brokers.
Fraud Investigations: Law enforcement frequently sues or seizes funds from scams, such as "pig butchering" schemes, rug pulls, and Ponzi schemes.

Regulatory Non-compliance: Exchanges are sued for failing to follow Anti-Money Laundering (AML) regulations or for misleading investors.

Civil Litigation: Class actions are often brought due to hacking, stolen funds, or breach of contract.

Family/National Security Cases: Crypto is often a point of contention in divorce proceedings and is increasingly involved in national security investigations.

It is important to note that crypto is not insured by a government, meaning stolen or lost funds are difficult to recover.

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The Defendant was found guilty and was sentenced to 23 years in prison.