Danny Devan: From TikTok Crypto Influencer to Fraudster
Denish Sahadevan, a renowned American crypto blogger, has confessed to perpetrating credit fraud, stealing personal data, and laundering public funds using cryptocurrencies and securities.
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According to his official statements, Sahadevan exploited the 2020 CARES Act, which was designed to provide emergency financial assistance to small businesses and individuals impacted by the COVID-19 pandemic. He lodged a total of 71 applications, attempting to secure about $1.2 million in loans. However, he was only granted $429,000, a portion of which came from the payroll protection program, with the remainder allocated as aid to mitigate the economic fallout.
Sahadevan submitted applications for these loans through his own businesses, bending the truth or downright falsifying documents such as tax forms and bank statements. To lend credibility to his ploy, he covertly listed his father as a co-borrower, forging his signature, and made use of a tax specialist's personal information.
Upon receiving the funds, Sahadevan shuffled the money between various accounts, then purchased cryptocurrencies and stocks while simultaneously settling his own debts. Astonishingly, his fraudulent deeds didn't stop there. Sahadevan also managed to secure a loan to purchase real estate worth $1.3 million as he did not declare his existing debts.
Law enforcement took several years to conduct a thorough investigation. They only initiated searches on February 24, 2023, and managed to seize multiple electronic devices, eighteen driver's licenses registered under different names, about $17,043 in cash, and a tangible gold Bitcoin. Now, under the terms of a settlement, Sahadevan must forfeit his assets and pay a minimum fine of $429,906. Besides this, he is staring down the barrel of a 32-year imprisonment sentence – 30 years for money laundering and fraud, with an additional 2 years for personal data theft.
It's always captivating to watch these investigations unfold, particularly as US law enforcement agencies continually attempt to criminalize digital assets, suggesting comprehensive bans and rigorous control. Ironically, the very government entities aren't capable of tracking blatant fraud with traditional currency. Although this story culminated in an arrest, the duration elapsed allowed Denish to disseminate investment advice and even contribute to popular media outlets, expounding on cryptocurrencies and trading strategies. This situation underscores how the existing US system lags behind in adopting new mechanisms for monitoring and disseminating up-to-date financial information.
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