A Bentonville woman has been sentenced to three years of probation and fined $10,000 following her conviction for computer fraud and issuing a false financial statement in connection with an attempt to buy a home using cryptocurrency. Aechia Chanel Armstrong, 38, faced charges related to a failed scheme to purchase a $800,000 property, which culminated in her trial in Benton County Circuit Court.
After deliberations, the jury found Armstrong guilty of the felony charge of computer fraud and the misdemeanor charge of issuing a false financial statement but acquitted her of deceptively obtaining signatures. Following the jury’s recommendation, Judge Brad Karren imposed three years of state-supervised probation and a $10,000 fine for the felony count, alongside a year of unsupervised probation and a $1,000 fine for the misdemeanor, with both sentences to run concurrently.
The charges stemmed from events that began in June 2021, when Bentonville police launched an investigation into Armstrong’s alleged activities. According to a probable cause affidavit, Kelly Williams, vice president of Harbor Closing Co., contacted authorities after her company was set to handle the closing on a Bentonville property listed at $800,000 by Limbird Realty. Armstrong had arranged to close on the home on June 8, 2021, using funds from a cryptocurrency exchange associated with a financial institution named Quantum Cache LLC.
However, police discovered irregularities in Armstrong’s documentation. Records showed that Armstrong had listed Harbor Closing Co. as a borrower on loan paperwork for the property, while she was listed as the creditor—a setup identified as a “redemption scheme” to fraudulently obtain funds.
Deputy Prosecutor Samuel Warren informed jurors that the bank referenced by Armstrong in the transaction documents did not, in fact, exist. Armstrong did not take the stand during the trial, opting not to testify in her own defense.
Judge Karren also issued a series of probation conditions for Armstrong, including instructions to report to the probation office within two business days. He further ordered her to notify her probation officer of any purchases exceeding $1,000 and to report any real estate transactions, stating, “I don’t care what it is. I don’t care if it’s a lot in Bella Vista.”
As part of her probation terms, Armstrong must also provide her probation officer with a complete list of all her electronic devices and information on her social media accounts. Additionally, Judge Karren prohibited Armstrong from contacting Harbor Closing Co., the real estate company involved, or any individuals linked to the failed property transaction.
The complex case sheds light on the risks surrounding cryptocurrency transactions and the creative schemes some may attempt to leverage in real estate. Armstrong’s case serves as a stark reminder of the legal boundaries that protect both buyers and sellers in real estate transactions.
Armstrong was originally arrested in February 2022, a year after her initial dealings with Harbor Closing Co. came under scrutiny. Her sentence highlights the increasing legal challenges courts face in cases where technology and cryptocurrency intersect with traditional fraud laws.
Reporter Tracy M. Neal can be reached via email at tneal@nwaonline.com or on X @NWATracy.
