A Canadian citizen has been sentenced to four years and three months in a U.S. federal prison for his role in an $8.2 million international cryptocurrency scheme that defrauded more than 15,000 investors.
Yan Ouellet, 41, from Quebec, was part of the team behind PlexCorps, a company that lured investors with false promises of revolutionizing the cryptocurrency market through its virtual currency, PlexCoin. U.S. District Judge Patricia Gaughan, presiding over the case in Cleveland, condemned Ouellet’s actions, stating, “You helped to scam individuals out of their hard-earned money.”
Ouellet, who pleaded guilty to conspiracy charges related to securities fraud and wire fraud, was ordered to repay $47,881 in restitution to victims who had not yet been compensated. Judge Gaughan also recommended that U.S. authorities consider allowing Ouellet to serve part of his sentence in Canada, though the final decision rests with federal agencies.
The PlexCoin Scheme
The scheme, which unfolded between May and August 2017, was orchestrated by PlexCorps owner Dominic Lacroix, alongside his partner Sabrina Paradis-Royer, with Ouellet serving as the company’s internet technology specialist. The group misled investors with exaggerated claims about PlexCorps’ capabilities, including inflated numbers of employees and expertise within the organization.
The company also promised staggering returns of more than 1,300%, enticing thousands of individuals to invest. In just two months, PlexCorps raised $8.2 million from investors, including individuals from Chesterland and Stow, Ohio.
However, instead of using the funds for the company as pledged, the scheme’s operators funneled the money into personal expenditures, including luxury goods, home renovations, and other lavish expenses, according to U.S. and Canadian authorities.
Justice Delivered
Prosecutors highlighted the widespread damage caused by the fraudulent scheme, which left countless investors grappling with financial losses. Ouellet’s role as an IT specialist included developing PlexCoin and providing technological support, helping perpetuate the company’s deceptive operations.
While Ouellet’s sentence marks a significant step in holding perpetrators accountable, officials noted that the investigation underscores the risks associated with unregulated cryptocurrency markets.
As part of the resolution, authorities continue to emphasize the importance of vigilance and due diligence for investors entering the volatile world of digital assets. The case serves as a stark reminder of the consequences of exploiting emerging financial technologies for personal gain.
