CT Man's Alleged Cryptocurrency Business Traded $1 Million

A Connecticut man has been indicted by a federal grand jury for operating an unlicensed money transmitting business, according to federal authorities.

William McNeilly, 55, of New Haven, is charged with one count of operating an unlicensed money transmitting business, which carries a maximum sentence of five years in prison if convicted guilty, and three counts of illegal monetary transactions, which carry a maximum sentence of 10 years. years in prison for each count, if convicted.

The indictment by a New Haven grand jury was returned on June 5, 2024, and McNeilly was arrested on June 6. He appeared before U.S. Magistrate Judge Maria E. Garcia in New Haven, pleaded not guilty and is free on $50,000 bond. according to federal authorities.

Authorities said the indictment alleges that McNeilly owned and operated Global Income Marketplace LLC from a storefront in West Haven and that, according to its Connecticut state registration, GIM was engaged in “website builders scheduling technology computer repairs and upgrades.”

McNeilly and another person also operated Global NuMedia LLC, a limited liability company registered in Delaware, authorities said.

Authorities said McNeilly allegedly never obtained a license from the State Department of Banking “to engage in the money transfer business,” but he allegedly “opened several bank accounts in the names of GIM and GNM, as well as a cryptocurrency exchange account in the name'. of GNM, and used the accounts to operate a business through which he exchanged customers' cash, checks and money orders for cryptocurrency, charging a fee for the service.

From approximately July 2019 to June 2022, McNeilly allegedly exchanged more than $1 million in U.S. currency for cryptocurrencies on behalf of clients across the United States, authorities said. “McNeilly knew that some of the funds involved in his illegal activity came from fraudulent schemes, and the investigation revealed that cashier's checks from victims of romance fraud schemes were sent to GIM and deposited into GIM accounts,” authorities said in a statement.

Authorities also alleged that in February 2021, “McNeilly was contacted by TD Bank and told that a $10,000 wire transfer to GNM had been reported as fraudulent and that he needed a license to operate a money transfer business”, but “despite the warning, and TD Bank closing the GIM and GNM accounts, McNeilly continued to operate his money transfer business through other GIM bank accounts and GNM.

The matter was investigated by the United States Postal Inspection Service.