A Bentonville woman has been fined and placed on probation following her conviction for computer fraud and issuing a false financial statement in an attempt to purchase an $800,000 property using cryptocurrency.
Aechia Chanel Armstrong, 38, was found guilty on Wednesday by a jury in Benton County Circuit Court. The charges stemmed from her involvement in a fraudulent scheme to acquire a home through deceptive financial documentation. Armstrong was convicted of the felony charge of computer fraud and the misdemeanor charge of issuing a false financial statement, though the jury found her not guilty of deceptively obtaining signatures.
The jury recommended Armstrong receive three years of state-supervised probation and a $10,000 fine for the felony charge, along with one year of unsupervised probation and a $1,000 fine for the misdemeanor. Circuit Judge Brad Karren upheld these recommendations, issuing a concurrent sentence that includes three years of probation and a $10,000 fine.
Armstrong’s arrest in connection with the case occurred in February 2022, following an investigation initiated in June 2021 by Bentonville police. According to court documents, Kelly Williams, vice president of Harbor Closing Co., reported that her company had been involved in processing the sale of a Bentonville home on Stonebriar Court. The home, listed by Limbird Realty, had been set for a June 8, 2021 closing, with an anticipated purchase price of $800,000. Armstrong’s intention, according to the affidavit, was to finance the purchase through cryptocurrency via Quantum Cache LLC, a financial institution that ultimately proved to be non-existent.
Further investigation revealed that Armstrong had submitted documents falsely listing Harbor Closing as a borrower of funds for the property, with Armstrong herself listed as the creditor. Prosecutors argued that this setup was part of a “redemption scheme,” a method of fraud that attempts to secure money through fabricated financial transactions. Samuel Warren, the deputy prosecutor in the case, told jurors that Quantum Cache LLC, the purported financial backer, did not exist.
In addition to the probation and fines, Judge Karren imposed specific conditions on Armstrong’s probation. Armstrong must report to the probation office within two business days and must notify her probation officer of any purchase exceeding $1,000. She is also required to inform her probation officer about any real estate transactions she is involved in, including offers, purchases, and acceptances.
Further, Armstrong is obligated to provide a detailed inventory of all her electronic devices and disclose information regarding her social media accounts to her probation officer.
This case underscores the increasing scrutiny around cryptocurrency in real estate transactions and highlights the risks associated with unregulated financial schemes. Armstrong’s conviction serves as a cautionary tale as authorities continue to monitor fraudulent activities involving digital currencies.
