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Date: 03-19-2020
Case Style:
United States of America v. Karanjit Singh Khatkar and Jagroop Singh Khatkar
Case Number: 3:19-cr-00303-SI
Judge: Michael H. Simon
Court: United States District Court for the District of Oregon (Multnomah County)
Plaintiff's Attorney: Quinn P. Harrington and Julia E. Jarrett
Defendant's Attorney:
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Description: Portland, OR - The United States of America charged Karanjit Singh Khatkar and Jagroop Singh Khatkar with conspiracy to commit wire fraud and money laundering.
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Karanjit Singh Khatkar, 23, and Jagroop Singh Khatkar, 24, residents of Surrey, British Columbia, Canada, were sentenced today to 24 months in federal prison and three years’ supervised release for conspiring to commit wire fraud and money laundering in a scheme to steal bitcoin from an Oregon resident.
According to the indictment, beginning in October 2017 and continuing until August 2018, the defendants used a Twitter account with the name @HitBTCAssist to trick victims into thinking they were communicating with a customer service representative from HitBTC, a Hong Kong-based online platform used to exchange virtual currency. HitBTC provides its customers with web-based “wallets” to store virtual currency and make transactions.
Using the fraudulent Twitter account, the defendants responded to the Oregon victim’s questions about withdrawing virtual currency from her HitBTC account. The defendants convinced the victim to send information they could use to log on and take over her email, HitBTC and Kraken accounts. Kraken is a U.S.-based online platform that offers services similar to HitBTC.
The defendants initiated transfers of 23.2 bitcoins from the victim’s HitBTC account to Karanjit Khatkar’s Kraken account. Karanjit Khatkar in turn transferred approximately 11.6 in stolen bitcoins to Jagroop Khatkar’s Kraken account.
Two days after illegally accessing the victim’s account, Karanjit Khatkar bought a Mercedes-Benz with $56,598 in Canadian dollars. The Khatkars also traveled to casinos. Karanjit Khatkar gambled with tens of thousands of dollars while staying at high-end casinos in Las Vegas, Nevada.
On July 18, 2019, Karanjit Khatkar was arrested upon arrival at the McCarran International Airport in Las Vegas and later ordered detained pending trial. Jagroop Khatkar appeared voluntarily for his arraignment and change of plea on December 16, 2019.
On December 16, 2019, the Khatkars pleaded guilty to conspiring to commit wire fraud and money laundering. As mandated by their plea agreements, the Khatkars delivered a check of $142,349 as a prepayment of restitution to their victim at their change of plea hearing.
At sentencing, the Khatkars were ordered to pay an additional $42,162 to their victim for a total restitution order of $184,511.
18:1349 CONSPIRACY TO COMMIT WIRE FRAUD
18:1956(h) CONSPIRACY TO COMMIT MONEY LAUNDERING
Outcome: SENTENCING DATE: 3/17/20; IMPRISONMENT: On Count ONE (1) and Count TEN (10) the defendant is hereby committed to the custody of the Federal Bureau of Prisons to be imprisoned for a term of twenty-four (24) months to be served concurrently. Defendant shall surrender for service of sentence before 2:00 P.M. on September 24, 2020; SUPERVISED RELEASE: Three (3) years; RESTITUTION: $184,511.22; SPECIAL ASSESSMENT: $100.00 for each of counts 1 and 10.
Plaintiff's Experts:
Defendant's Experts:
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