The U.S. Department of Justice announced June 18 that federal jurors convicted Daniel Chartraw, 53, formerly of South Lake Tahoe and Lodi, California, after an eight-day trial tied him to cryptocurrency and investment fraud schemes involving Crypto-Pal LLC and TDA Global LLC that cost investors nearly $1 million. Prosecutors presented evidence that Chartraw operated the schemes from March 2021 to February 2022 by making false guarantees of high returns with no risk, using aliases including "Leonard" and "Leon," and misappropriating investor funds for personal use. The conviction follows a trial where evidence showed Chartraw concealed his identity due to a prior fraud conviction while directing operations across multiple companies and misleading investors through fabricated account statements and shifting business descriptions.
Trial Evidence Shows Chartraw Operated Schemes Using Aliases and False Guarantees
Prosecutors presented a case built on false guarantees, sham ventures, and investor funds that were never used as promised. Chartraw and an associate controlled multiple companies and communicated with investors via calls, texts, emails, Microsoft Teams, and Zoom during the scheme period.
The DOJ explained: "Crypto-Pal was a web-based cryptocurrency trading company that guaranteed high returns with no risk." The Department of Justice continued: "At various points, Chartraw also claimed that TDA Global was engaged in supplying jet fuel to airlines or operated its own cryptocurrency trading platform."
Trial evidence showed Chartraw directed operations while using aliases including "Leonard" and "Leon." He told associates he needed to conceal his identity due to a prior fraud conviction, though many investors later learned that Chartraw controlled the businesses and their accounts. Investor pitches shifted across business lines, with Crypto-Pal promoted as a crypto trading operation and TDA Global described at different times as a jet fuel supplier to airlines or as a separate cryptocurrency trading platform.
Bank records became central to the government's case. Although Chartraw was not a signatory on Crypto-Pal's business bank account, evidence showed he repeatedly accessed it to withdraw cash, make purchases, and transfer investor funds into accounts he personally controlled. Victims entered the schemes through personal and professional relationships, including referrals from friends or family. Prosecutors described fabricated account statements, false assurances of growth, and repeated misrepresentations that persuaded investors to send additional cash or cryptocurrency.
When investors sought their funds or questioned delays, Chartraw offered excuses, shifted responsibility, or stopped communicating, while victims received neither returns nor repayment of their principal.
DOJ Announces Maximum Statutory Penalties of 20 Years Prison Per Count
The Justice Department noted: "Chartraw faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count." No sentencing date has been announced in the DOJ statement.
FAQ
What did Daniel Chartraw do that led to his conviction?
Daniel Chartraw was convicted after an eight-day trial for operating cryptocurrency and investment fraud schemes through Crypto-Pal LLC and TDA Global LLC from March 2021 to February 2022. Prosecutors presented evidence that he made false guarantees of high returns with no risk, used aliases including "Leonard" and "Leon" to conceal his identity, and misappropriated nearly $1 million in investor funds by accessing business bank accounts without authorization and transferring money into accounts he personally controlled.
What penalties does Daniel Chartraw face after his conviction?
According to the U.S. Department of Justice announcement on June 18, Daniel Chartraw faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. No sentencing date was announced in the DOJ statement.
