The three indicted directors of E-Gold have been spared jail time after pleading guilty to violations of money laundering and running an unlicensed money transmitting business. Judge Rosemary Collyer said the men deserved lenient sentences because they did not intend to engage in illegal activity.
Douglas Jackson was sentenced to 300 hours of community service, a $200 fine, and three years supervision including 6 months home restriction with an electronic monitoring anklet. The judge spared him a larger fine because Jackson is deeply in debt. "Dr. Jackson has suffered, will continue to suffer, and may never be successful with E-Gold," said the judge.
The two other defendants, Reid Jackson and Barry Downey were each sentenced to three years of probation, 300 hours of community serice and $2,600 in fines and fees.
The company, which in July plead guilty to criminal charges related to money laundering, will be allowed to continue operation pending licensing by the various states in which it operates.
Comments
Seemed like a good idea at the time:-)
This is a sad, libelous, and criminal state of affairs (on the part of the legal system) -- the sentencing nothing more than a smoke-and-mirrors scam by the state (and monied-interests) to try and preserve their power a little longer. I was a major exchanger in the early days of E-gold's operations (for E-gold, and other emerging metal-back e-currencies -- 1999 - 2001), and was raped (metaphorically) by the Feds, and shut down -- with a couple hundred grand "dissappeared" by the SS (Secret Service) and/or other players, and our house in ransacked ruins after the search and seizure of equipment & records (no crime was committed on my part or e-gold's and the Feds dropped the matter, but the damage was done with no recompence -- taking years of recovery). The whole thing was a political-intimidation move by the Federal Government and the Financial Industry. . . . can't have gold and silver being used as money in a convenient, inexpensive fashion, that might provide alternatives to faultering fiat currencies around the world (and e-gold was doing just that).
During the whole mess, I personally warned Mr. Jackson & Friends, on the phone, that they were next -- either in a few months or a few years and that they should either wind-down and close their business or restructure it & themselves out of reach (at least legally, and geographically, but those barriers have never stopped government thugs in the past and the don't now) of our corrupt and evolvingly unconstitutional government. Being a well-meaning idealist, he didn't take the warning seriously and is now paying the price for being an honest businessman, plying a legal trade that is a potential competitor to government force and fraud.
Alex, I totally agree with your comments. The demise of several money exchanges and seizure of their assets caused thousands of small businesses to go under. It seems whenever someone in the financial community builds a better mousetrap, the government steps in to ensure the banks are not hurt. E-gold was providing a service to the online business community at a relatively modest cost. Since the indictment, I have lost over $3,000 using other methods of exchange due to fraud. Trying to get the authorities to act on internet crime is virtually impossible. With no law enforcement willing to catch the criminals, the small business person suffers more than anyoner. E-gold was a safe, viable and stable means of transacting business. I know they are trying to return to business as usual but that is impossible if they are subject to government regulations.
247earnings
Post new comment