Montreal businessman sentenced to 3 and a half years in U.S. prison for laundering bitcoin
A Montreal business owner, Firoz Patel, will spend another three and a half years in U.S. federal prison after being sentenced for laundering $43 million US worth of Bitcoin following an earlier conviction for operating an unlicensed money-transmitting business.
Patel, 50, pleaded guilty to obstruction of an official proceeding for attempting to hide the Bitcoin from U.S. prosecutors.
He was initially convicted to conspiracy charges and sentenced to 36 months in U.S. prison in 2020. Patel had been running an illegal payment processing company called Payza (originally AlertPay). According to U.S. court records, Payza was involved in high-risk activities, such as Ponzi schemes, multilevel-marketing scams and pyramid schemes, among others.
Patel was the subject of CBC investigations, which were made possible by leaked documents obtained by the International Consortium of Investigative Journalists (ICIJ) as part of the worldwide Pandora Papers investigation and shared exclusively with its Canadian partners, CBC and The Toronto Star.
When Patel was sentenced by then-District Judge Ketanji Brown Jackson, who is now a U.S. Supreme Court justice, he was ordered to forfeit 450 Bitcoin (valued at $24 million US then and now $43 million US).
But Patel told a probation officer and the court that his only assets were $30,000 US in a retirement savings account.
"Rather than comply, shortly after his sentencing but before reporting to prison, Patel began consolidating Payza's illicit cryptocurrency proceeds and attempted to deposit them with Binance, a virtual currency exchange," according to the U.S. Attorney's Office for the District of Columbia.
Binance ended up freezing the funds and Patel attempted to deposit them in an offshore account. Those funds were flagged and American law enforcement opened an investigation.
Patel somehow became aware of the investigation into his bitcoins, though, and enlisted an accomplice to impersonate an attorney and negotiate with the U.S. Attorney's Office until his 36-month sentence was up. He planned to flee to Canada at that point.
Investigators discovered the impersonation in time and indicted Patel in May 2023.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Edmonton Journal
3 hours ago
- Edmonton Journal
Signing Brad Marchand would be another summer W for Maple Leafs' Brad Treliving
Article content Tanev set a poised tone for the defence corps, emerging as one the Leafs' most important players, and Stolarz had his best season in the National Hockey League despite missing time because of a knee issue before a concussion knocked him out of the second round of the playoffs against the Florida Panthers. Defenceman Oliver Ekman-Larsson also turned out be a good addition and forwards Steven Lorentz and Max Pacioretty, signed after attending training camp on a professional tryout, each made physical contributions. As we await word on whether the Leafs and Vegas Golden Knights are able to complete a trade involving the rights to star winger Mitch Marner before free agency opens at 12 p.m. on Tuesday, Treliving and his staff will be putting finishing touches on the club's desired list of free agents. After John Tavares signed for four years and an average annual value of $4.38 million US on Friday, the Leafs are approximately $21.3 million under the salary cap. Restricted free agent Matthew Knies reportedly has signed a six-year deal worth $7.75 million per season, which would leave approximately $14 million in the Leafs' bank account.
Vancouver Sun
4 hours ago
- Vancouver Sun
NHL Free Agency: Canucks in a frenzy to find a centre, but don't have ample salary cap space
A year ago, it really was a frenzy. The Vancouver Canucks made seven free-agent acquisitions on opening day, highlighted by prudent plays for wingers Jake DeBrusk and Kiefer Sherwood. DeBrusk led the Canucks this season with a career-high 28 goals and the hard-hitting Sherwood had a personal best 19 goals and NHL record-setting 462 hits. A year later, the frenzy is about an exodus of unrestricted free agents, an ongoing search for a second-line centre, and only US$7 million in salary cap space. Winger Brock Boeser , 28, centre Pius Suter , 29, and depth defenceman Noah Juulsen , 28, are expected to test the open market Tuesday, even though there were recent attempts to bridge salary and term gaps with Boeser and Suter. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. AFP Analytics is projecting Boeser will command a six-year, US$50.7 million contract with several suitors bidding for his services. The $8.45 million annual average value is a leap from his expiring $6.65 million cap hit and speaks to his value, rising cap ceiling and teams believing his addition gets them closer to contending. The money didn't scare the Canucks as much as the term. 'It's a two-way street since both sides know it's a long shot that he's back,' a source told Postmedia. It's why the Canucks are banking on the trade acquisition of Evander Kane, 33, to fill the Boeser void and provide the push and open space in an alignment with Elias Pettersson . The incentive for Kane and payoff for the Canucks is obvious. He has a year left on his contract at $5.125 million and getting another deal is predicated on his success level next season. For the versatile Suter, who filled in admirably as a first-line centre and key cog in the league's third-rated penalty kill, it's about dollars and sense. A career-high 25 goals this season is his ticket to finally getting good money and term. He could land a four-year, $19.9 million deal, a considerable jump to a $4.98 million cap hit from $1.6 million. However, it's the riddle in the middle that continues to confound the Canucks. They believed packaging their 15th overall selection in the NHL Draft on Friday, along with a player, could have cemented a trade with the Minnesota Wild for small but effective restricted free agent Marco Rossi. He had 23 goals and 60 points in 2024-25. The Wild wanted more and Rossi will get more when he signs. AFP Analytics has that deal pegged at seven years and $51.7 million. So, where do they Canucks go from here to fill the centre gap? Right now, it's Pettersson, Filip Chytil, Teddy Blueger , Max Sasson and Aatu Raty on the depth chart. And if the Canucks go fishing in free agency for depth, it's not cheap. Even a serviceable pivot like Mikael Granlund, 33, wants two years at $4.9 million annually. Fine for stability and versatility for a contender, or to give a prize pivot prospect another year of seasoning. There's also a younger and more affordable free-agency play in versatile Jack Roslovic, 28, who has often popped up on the Canucks' radar. He's projected to land a three-year deal at $4.09 million in annual average value and can play centre or wing. Roslovic matched a career high with 22 goals this season, and at his best, the 6-foot-2, 200-pound forward has talent, is sneaky fast, but a streaky scorer. He started strong in 2024-25 with nine goals in a 10-game span and had a dozen through 20 games. However, he had just one goal the next 12 outings. Which, of course, leads to the question: Who is the real Roslovic? Is there more in the tank? He was a roster option for the Carolina Hurricanes in the post-season and a healthy scratch for portions of three series. He had four points (1-3) in nine games. The biggest news Tuesday could be contract extensions for Thatcher Demko , 29, and Conor Garland , 29, who have a year left on their respective contracts. It's faith in Demko maintaining his health and returning to peak form. And it's rewarding Garland for being a versatile culture-carrier that has the pair poised for increases. Demko's term could be concerning but he's projected for a five-year, $34.7 million deal that carries $6.9 million in AAV. From career hip, groin and knee ailments — plus that mysterious popliteus muscle predicament at back of his knee — a string of setbacks have tested the resolve to endure arduous rehabilitations. Demko did the work and nothing is impeding preparation for a heightened level of readiness next season. He did miss 15 games with an undisclosed Feb. 8 ailment, but had an encouraging run before that setback, going 3-1-1 with a 1.25 goals-against average, .952 saves percentage, and a shutout. He finished with 10-8-3 mark 2.90 GAA and .889 saves percentage. The goal next fall is obvious. Get back to Vezina Trophy form of 2023-24 with career bests in wins (35), GAA (2.45), saves percentage (.918) and shutouts (5). Demko will earn $5 million next season. In the interim, there's a crease conundrum. Kevin Lankinen, 30, has a five-year extension at $4.5 million in AAV kicking in next season. And Calder Cup playoffs most valuable player Arturs Silovs , 24, has a year left on his deal at $850,000 before becoming a restricted free agent with arbitration rights. Silovs is not waiver exempt next season and obviously wouldn't clear waivers for assignment to AHL champion Abbotsford. His stock has never been higher, but obviously wouldn't command as much as Demko in a trade. But that's apparently not happening. As for Garland, it's the will and the underrated skill that merit a longer Vancouver stay. He loves the city and loves to compete so building on his 19 goals and 50 points should be easier amid franchise commitment. Garland is reportedly in line for a six-year, $36 million extension and will earn $4.95 million next season on his expiring deal. Former Canucks assistant Glen Gultuzan, who was head coach of the Dallas Stars in 2011-12 and 2012-13, is reportedly returning to Texas and replacing the fired Peter DeBoer as bench boss. Gulutzan, 53, was also at helm of the Calgary Flames for two seasons — 2016-17 and 2017-18 — and most recently an Edmonton Oilers assistant for seven seasons. His strength is connecting with young and veteran players, a key to getting the Stars over the playoff hump and back to the Stanley Cup Final. The Stars could have gone the familiarity route and promoted Texas Stars head coach Neil Graham, 40, after five seasons running its AHL affiliate bench. Or, they could have pursued Abbotsford Canucks head coach Manny Malhotra, 45, whose stock is high after winning a Calder Cup crown in his first season running a pro bench. bkuzma@
Edmonton Journal
4 hours ago
- Edmonton Journal
NHL Free Agency: Canucks in a frenzy to find a centre, but don't have ample salary cap space
Article content A year ago, it really was a frenzy. The Vancouver Canucks made seven free-agent acquisitions on opening day, highlighted by prudent plays for wingers Jake DeBrusk and Kiefer Sherwood. DeBrusk led the Canucks this season with a career-high 28 goals and the hard-hitting Sherwood had a personal best 19 goals and NHL record-setting 462 hits. Article content A year later, the frenzy is about an exodus of unrestricted free agents, an ongoing search for a second-line centre, and only US$7 million in salary cap space. Article content Winger Brock Boeser, 28, centre Pius Suter, 29, and depth defenceman Noah Juulsen, 28, are expected to test the open market Tuesday, even though there were recent attempts to bridge salary and term gaps with Boeser and Suter. AFP Analytics is projecting Boeser will command a six-year, US$50.7 million contract with several suitors bidding for his services. The $8.45 million annual average value is a leap from his expiring $6.65 million cap hit and speaks to his value, rising cap ceiling and teams believing his addition gets them closer to contending. The money didn't scare the Canucks as much as the term. 'It's a two-way street since both sides know it's a long shot that he's back,' a source told Postmedia. It's why the Canucks are banking on the trade acquisition of Evander Kane, 33, to fill the Boeser void and provide the push and open space in an alignment with Elias Pettersson. The incentive for Kane and payoff for the Canucks is obvious. He has a year left on his contract at $5.125 million and getting another deal is predicated on his success level next season. Article content For the versatile Suter, who filled in admirably as a first-line centre and key cog in the league's third-rated penalty kill, it's about dollars and sense. A career-high 25 goals this season is his ticket to finally getting good money and term. He could land a four-year, $19.9 million deal, a considerable jump to a $4.98 million cap hit from $1.6 million. However, it's the riddle in the middle that continues to confound the Canucks. They believed packaging their 15th overall selection in the NHL Draft on Friday, along with a player, could have cemented a trade with the Minnesota Wild for small but effective restricted free agent Marco Rossi. He had 23 goals and 60 points in 2024-25. The Wild wanted more and Rossi will get more when he signs. AFP Analytics has that deal pegged at seven years and $51.7 million. So, where do they Canucks go from here to fill the centre gap? Article content Right now, it's Pettersson, Filip Chytil, Teddy Blueger, Max Sasson and Aatu Raty on the depth chart. And if the Canucks go fishing in free agency for depth, it's not cheap. Even a serviceable pivot like Mikael Granlund, 33, wants two years at $4.9 million annually. Fine for stability and versatility for a contender, or to give a prize pivot prospect another year of seasoning. There's also a younger and more affordable free-agency play in versatile Jack Roslovic, 28, who has often popped up on the Canucks' radar. He's projected to land a three-year deal at $4.09 million in annual average value and can play centre or wing. Roslovic matched a career high with 22 goals this season, and at his best, the 6-foot-2, 200-pound forward has talent, is sneaky fast, but a streaky scorer. He started strong in 2024-25 with nine goals in a 10-game span and had a dozen through 20 games. However, he had just one goal the next 12 outings. Article content Which, of course, leads to the question: Who is the real Roslovic? Is there more in the tank? He was a roster option for the Carolina Hurricanes in the post-season and a healthy scratch for portions of three series. He had four points (1-3) in nine games. Extensions coming for Demko, Garland? The biggest news Tuesday could be contract extensions for Thatcher Demko, 29, and Conor Garland, 29, who have a year left on their respective contracts. It's faith in Demko maintaining his health and returning to peak form. And it's rewarding Garland for being a versatile culture-carrier that has the pair poised for increases. Demko's term could be concerning but he's projected for a five-year, $34.7 million deal that carries $6.9 million in AAV. From career hip, groin and knee ailments — plus that mysterious popliteus muscle predicament at back of his knee — a string of setbacks have tested the resolve to endure arduous rehabilitations. Article content Demko did the work and nothing is impeding preparation for a heightened level of readiness next season. He did miss 15 games with an undisclosed Feb. 8 ailment, but had an encouraging run before that setback, going 3-1-1 with a 1.25 goals-against average, .952 saves percentage, and a shutout. He finished with 10-8-3 mark 2.90 GAA and .889 saves percentage. The goal next fall is obvious. Get back to Vezina Trophy form of 2023-24 with career bests in wins (35), GAA (2.45), saves percentage (.918) and shutouts (5). Demko will earn $5 million next season. In the interim, there's a crease conundrum. Kevin Lankinen, 30, has a five-year extension at $4.5 million in AAV kicking in next season. And Calder Cup playoffs most valuable player Arturs Silovs, 24, has a year left on his deal at $850,000 before becoming a restricted free agent with arbitration rights. Article content Silovs is not waiver exempt next season and obviously wouldn't clear waivers for assignment to AHL champion Abbotsford. His stock has never been higher, but obviously wouldn't command as much as Demko in a trade. But that's apparently not happening. As for Garland, it's the will and the underrated skill that merit a longer Vancouver stay. He loves the city and loves to compete so building on his 19 goals and 50 points should be easier amid franchise commitment. Garland is reportedly in line for a six-year, $36 million extension and will earn $4.95 million next season on his expiring deal. Gulutzan returns to run Stars bench Former Canucks assistant Glen Gultuzan, who was head coach of the Dallas Stars in 2011-12 and 2012-13, is reportedly returning to Texas and replacing the fired Peter DeBoer as bench boss. Gulutzan, 53, was also at helm of the Calgary Flames for two seasons — 2016-17 and 2017-18 — and most recently an Edmonton Oilers assistant for seven seasons. His strength is connecting with young and veteran players, a key to getting the Stars over the playoff hump and back to the Stanley Cup Final. The Stars could have gone the familiarity route and promoted Texas Stars head coach Neil Graham, 40, after five seasons running its AHL affiliate bench. Or, they could have pursued Abbotsford Canucks head coach Manny Malhotra, 45, whose stock is high after winning a Calder Cup crown in his first season running a pro bench. Latest National Stories
