Daniel Chartraw, formerly of South Lake Tahoe and Lodi, California, has been convicted by a federal jury in connection with multiple cryptocurrency and investment fraud schemes that caused substantial losses to investors across the country.

According to the U.S. Department of Justice, Chartraw and an associate controlled multiple companies, including Crypto-Pal LLC and TDA Global LLC, and allegedly used false investment guarantees, sham business ventures, fabricated account statements, and misleading claims about cryptocurrency trading and other ventures to solicit investor funds.

Official source: U.S. Department of Justice, “Jury Finds Former South Lake Tahoe Man Guilty of Multiple Cryptocurrency and Investment Fraud Schemes That Defrauded Investors of Nearly $1 Million” (www.justice.gov/usao-edca/pr/jury-finds-former-south-lake-tahoe-man-guilty-multiple-cryptocurrency-and-investment)

The Crypto-Pal and TDA Global Allegations

According to DOJ, between March 2021 and February 2022, Chartraw and an associate controlled multiple companies, including Crypto-Pal LLC and TDA Global LLC.

Chartraw and individuals acting on his behalf allegedly represented that Crypto-Pal was a web-based cryptocurrency trading company that guaranteed high returns with no risk. At other points, Chartraw allegedly claimed that TDA Global was involved in supplying jet fuel to airlines or operated its own cryptocurrency trading platform.

Federal prosecutors said Chartraw communicated with investors through phone calls, text messages, emails, and virtual meetings. DOJ also stated that Chartraw frequently used aliases such as “Leonard” or “Leon” while directing business operations.

False Guarantees and Fabricated Account Statements

DOJ stated that Chartraw cultivated investor trust through personal and professional relationships, fabricated account statements, false assurances of growth, and repeated misrepresentations.

According to prosecutors, investors were persuaded to transfer cryptocurrency or cash based on promises that their money would be actively traded. DOJ stated that the funds were not invested as represented and that investors received neither the promised returns nor the return of their principal.

The total loss to investors was nearly $1 million.

Why Guaranteed Crypto Returns Are a Red Flag

The Chartraw case highlights a recurring warning sign in investment fraud cases: promises of high returns with little or no risk.

Legitimate investments carry risk. This is especially true in cryptocurrency-related investments, where volatility, custody issues, lack of transparency, and limited regulatory oversight can create significant risks for investors.

When a promoter claims that a crypto trading platform or private investment opportunity can produce guaranteed high returns, investors should be especially cautious. Those claims may be used to create false confidence while concealing the fact that investor funds are not being used as promised.

Investor Recovery Issues

A criminal conviction can be an important development, but it does not automatically make investors whole.

Investors who lost money in Crypto-Pal, TDA Global, or related investment opportunities may need to evaluate how they were introduced to the investment, whether any third party recommended it, whether any licensed financial professional was involved, and whether any intermediary received compensation for introducing investors to the scheme.

Potential recovery questions may include:

  • Who introduced the investor to the opportunity?
  • Were investors promised guaranteed or risk-free returns?
  • Were account statements, trading reports, or performance updates provided?
  • Did investors transfer cash, cryptocurrency, or both?
  • Were funds sent directly to an individual, business account, wallet, or third-party platform?
  • Did any broker, advisor, insurance agent, accountant, attorney, or promoter recommend the investment?
  • Were elderly or inexperienced investors targeted?

These questions matter because investors may have potential claims not only against the direct wrongdoer, but also against any parties that promoted, recommended, enabled, or failed to supervise the investment.

What Investors Should Do

Investors who believe they lost money through Crypto-Pal, TDA Global, Daniel Chartraw, or a related cryptocurrency or private investment scheme should gather and preserve all relevant records.

Important documents may include:

  • Wire transfer records;
  • Cryptocurrency wallet records;
  • Bank statements;
  • Emails, text messages, and call notes;
  • Investment contracts;
  • Account statements or performance reports;
  • Screenshots of online portals or dashboards;
  • Marketing materials;
  • Names of anyone who recommended or introduced the investment.

Investors should also avoid deleting messages, changing wallets, or discarding records that may help trace funds or establish how the investment was represented.

Important Note for Investors

Chartraw has been convicted in the criminal case, but investors should still carefully evaluate their own recovery options. Criminal proceedings may result in restitution or forfeiture, but those processes may not fully compensate victims for their losses.

Sonn Law Group represents investors in claims involving cryptocurrency investment fraud, Ponzi schemes, promissory note fraud, private investment fraud, broker misconduct, investment adviser misconduct, unsuitable investments, elder financial exploitation, and failure-to-supervise claims.

Investors who suffered losses in cryptocurrency investments, private offerings, or fraudulent investment schemes may contact Sonn Law Group to discuss potential recovery options.