A U.S. court has sentenced Jerry Ji Guo, a resident of San Francisco, to an effective six months in prison for his role in a fraudulent initial coin offering (ICO). In addition to the prison term, the court ordered Guo to pay over $4 million in restitution. Further, Guo will also cooperate with the government in the identification and return of the stolen property.
Embezzlement of Client Funds
In a statement, the United States Department of Justice (DOJ) says Guo, who pleaded guilty on August 26, 2019, had presented himself “as an ICO consultant and promised his clients he would perform marketing and publicity services.” However, instead of fulfilling his promises, Guo “embezzled the clients’ cash and cryptocurrency.”
As court documents show, a U.S. grand jury initially indicted Guo on November 15, 2018, charging him with “eight counts of wire fraud, in violation of 18 U.S.C. § 1343.” However, the statement says Guo only pleaded guilty to one count while the rest of the charges were…