A Columbia County man has been sentenced to federal prison after pleading guilty to orchestrating a wire fraud scheme involving the sale of expensive computer equipment to over 40 customers. Steven Drawdy, 40, of Grovetown, was sentenced to 32 months in prison for his role in defrauding investors in the cryptocurrency market.
According to officials, Drawdy participated in an online cryptocurrency discussion forum from August 2021 to April 2022. During this period, he collected over $1.1 million from at least 42 victims who believed they were purchasing cryptocurrency mining computers from him.
Court documents reveal that Drawdy’s scheme involved soliciting payments from customers for these high-value mining devices. Once he received the money, he would either cease communication or offer partial refunds that required an additional “processing fee.” Despite these offers, Drawdy ultimately failed to provide the promised equipment or the refunds, leaving his customers defrauded.
U.S. District Court Judge J. Randal Hall sentenced Drawdy to 32 months in federal prison. In addition to the prison term, Drawdy was ordered to pay restitution totaling more than $1.1 million, the amount he defrauded from his victims. Following his release from prison, Drawdy will also be required to serve three years of supervised release.
“Steven Drawdy ripped off dozens of people by preying on their desire to make money in the complex world of cryptocurrency,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “Our law enforcement partners did exceptional work in identifying and shutting down this scheme.”
The investigation into Drawdy’s fraudulent activities was led by the FBI. Assistant U.S. Attorney Jennifer A. Stanley prosecuted the case. Brian Ozden, Assistant Special Agent in Charge of the FBI Atlanta, emphasized the seriousness of the crime, stating, “While using the latest in technology as his hook to attack victims, Drawdy’s actions were nothing more than old-fashioned fraud. The FBI will continue to go after criminals doing any type of fraud and seek to hold them accountable.”
The fraudulent scheme significantly impacted the victims, who lost substantial amounts of money in the hopes of gaining from cryptocurrency investments. Drawdy’s actions, leveraging the allure of emerging technology, underscore the ongoing risks associated with online transactions and investment schemes.
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Steven Drawdy’s sentencing highlights the severe consequences of engaging in fraudulent activities, particularly those involving significant financial investments and emerging technologies like cryptocurrency. As he begins his prison term, the case serves as a reminder of the importance of vigilance and integrity in financial dealings, especially in the rapidly evolving digital landscape.
Reference Article:
https://www.yahoo.com/news/grovetown-man-sentenced-cryptocurrency-computer-161324731.html