Tax & Accounting News

U.S. Extradites Citizen From Costa Rica After Wire Fraud Plea

U.S. Extradites Citizen From Costa Rica After Wire Fraud Plea

A United States citizen has been extradited from Costa Rica after pleading guilty to a wire fraud scam that ultimately cost investors over $2.9 million.

The case, primarily investigated by the IRS Criminal Investigation division, involves a scam that Butler and his co-conspirators operated between January 2011 and October 2016. 

The group operated a number of binary options investment companies including SpotFN, Binary FN and Janus Options (Binary Options Companies) out of Glen Cove, New York, Costa Rica, and the nation of Kosovo.

Per an official release from the IRS:

The Binary Options Companies promised to pay investors, who were located throughout the United States, a predetermined profit based upon particular outcomes in the markets for securities, currencies and other investments. For example, the Binary Options Companies would offer to pay customers a predetermined profit if a particular security or currency was valued at a particular price on a particular day at a particular time.

Before his extradition on July 14, 2022, Butler was arrested in April in Costa Rica. He officially pled guilty to wire fraud conspiracy on August 31 before United States District Judge Joanna Seybert. 

At sentencing, Butler faces a maximum of 20 years in prison.

Breon Peace, United States Attorney for the Eastern District of New York, issued a statement about the case, saying:

"Butler's guilty plea demonstrates that even when crimes are committed from thousands of miles beyond our country's borders using the latest computer software, neither the foreign nature nor the sophistication of the scheme will shield fraudsters from being brought to justice in a U.S. courtroom. This Office is committed to protecting the investing public from financial scams wherever they occur."

Thomas M. Fattorusso, Special Agent in Charge of the IRS Criminal Investigation unit in New York, also weighed in, noting:

"David Butler and his accomplices employed a complex, multi-million dollar con to deceive investors by using a manipulated 'binary option' system. While investors waited for a surefire return on their investment, Butler pocketed the money to guarantee his own future--until he was caught. Butler now understands that his only genuine guarantee is that he will now face the consequences of his criminal schemes."

Butler's sentencing date has not yet been confirmed.

What do you think about this wire fraud conspiracy?

You Might Also Enjoy:

share this post
Search for matches...
Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts