Ontario Man Agrees to Plead Guilty to Federal Charges of Illegally Operating Bitcoin-Cash Exchange Business and Money Laundering
2021-01-29 · Press release
Summary: A San Bernardino County man was charged today with running an unlicensed company that exchanged tens of millions of dollars in Bitcoin and cash.
LOS ANGELES – A San Bernardino County man was charged today with running an unlicensed company that exchanged tens of millions of dollars in Bitcoin and cash.
Hugo Sergio Mejia, 49, of Ontario, was charged in a two-count information with operating an unlicensed money transmitting business and money laundering. In a plea agreement also filed today, Mejia agreed to plead guilty to these felony offenses. Mejia is expected to plead guilty to the information in United States District Court in March.
According to his plea agreement, from May 2018 to September 2020, Mejia operated a virtual currency business that exchanged Bitcoin for cash, and vice versa, charging commissions for these transactions. Mejia admitted he never registered his business with the Financial Crimes Enforcement Network, a bureau with the United States Department of the Treasury that collects and analyzes information to combat financial crimes, including money laundering.
During the nearly 2½-year period, according to the plea agreement, Mejia exchanged at least $13 million.
Mejia also admitted he established companies to mask his true activity, including Worldwide Secure Communications LLC, World Secure Data, and The HODL Group LLC. Mejia advertised his business online and was referred to customers by word of mouth, communicating with them via encrypted messaging services, and meeting them in person at coffee shops, the plea agreement states.
On several occasions between May 2019 and March 2020, Mejia met with a client, who was working with law enforcement, to exchange Bitcoin for tens of thousands of dollars in cash, according to the plea agreement. On March 12, 2020, Mejia met with the client at a coffee shop in Irvine and facilitated the exchange of 14.273 Bitcoin for $82,150 in cash plus fees. During this meeting, the client informed Mejia that his primary customer was a methamphetamine buyer in Australia who purchased methamphetamine every four to six weeks and sold it in Australia for five times more than the average price in the United States, according to the plea agreement.
Mejia and the client who was working with law enforcement conducted five Bitcoin-cash transactions that cumulatively exceeded $250,000, the plea agreement states.
Mejia further agreed to forfeit all assets derived from the illegal conduct, including $233,987 in cash seized from residences in Santa Ana and Ontario, silver coins and bars, and approximately $95,587 in various cryptocurrency seized.
Once he pleads guilty to the two counts in the information, Mejia will face a statutory maximum sentence of 25 years in federal prison.
This matter was investigated by IRS Criminal Investigation and Homeland Security Investigations, which received assistance from the Costa Mesa Police Department.
This case is being prosecuted by Assistant United States Attorneys Puneet V. Kakkar and Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section. Assistant United States Attorney Brent A. Whittlesey of the Asset Forfeiture Section is handling the forfeiture aspect of the case.
- district_office
- Central District of California
- usa_name
- event_type
- plea
- judge_name
- judge_title
- case_number
- max_penalty_text
- 25 years in federal prison
- sentence_summary
- money_amounts
- $13 million, $82,150, $233,987, $95,587
- crypto_assets
- Bitcoin
- statutes_json
- timeline_json
- press_release_url
- https://www.justice.gov/usao-cdca/pr/ontario-man-agrees-plead-guilty-federal-charges-illegally-operating-bitcoin-cash-0
- extras_json
| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 2005 | Hugo Sergio Mejia | defendant | Ontario, California | 49 | indicted | |||
| 2006 | Puneet V. Kakkar | prosecutor | Assistant United States Attorney | U.S. Attorney's Office | Los Angeles, California | |||
| 2007 | Brittney M. Harris | prosecutor | Assistant United States Attorney | U.S. Attorney's Office | Los Angeles, California | |||
| 2008 | Brent A. Whittlesey | prosecutor | Assistant United States Attorney | U.S. Attorney's Office | Los Angeles, California |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 1242 | Internal Revenue Service Criminal Investigation | IRS CI | investigation | conducted the investigation | ||
| 1243 | Homeland Security Investigations | HSI | investigation | conducted the investigation | ||
| 1244 | Costa Mesa Police Department | CMPD | assistance | provided assistance in the investigation | ||
| 1245 | United States Attorney's Office | USAO | prosecution | Puneet V. Kakkar, Brittney M. Harris, Brent A. Whittlesey | prosecuted the case and handled asset forfeiture |
| charge_id | charge_description | statute | severity | max_penalty | fine_amount | defendant | status | participant_id | cl_docket_id | count_num | is_1960 | verified_1960 | source | updated_at |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1050 | money laundering | felony | Hugo Sergio Mejia | indicted | 0 | enrichment | ||||||||
| 1049 | operating an unlicensed money transmitting business | felony | Hugo Sergio Mejia | indicted | 1 | enrichment | 2026-09-16T19:45:58+00:00 | |||||||
| 2956 | operating an unlicensed money transmitting business and money laundering | 1 | press | 2026-09-16T19:45:58+00:00 | ||||||||||
| 2957 | unlicensed money transmitting business and money laundering | 1 | press | 2026-09-16T19:45:58+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 391 | forfeiture | $233,987 | USD | cash seized from residences in Santa Ana and Ontario | cash | Hugo Sergio Mejia | ordered |
| 392 | forfeiture | silver coins and bars | property | Hugo Sergio Mejia | ordered | ||
| 393 | forfeiture | $95,587 | USD | various cryptocurrency seized | cryptocurrency | Hugo Sergio Mejia | ordered |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 272 |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 1307 | Mejia admitted he never registered his business with the Financial Crimes Enforcement Network, a bureau with the United States Department of the Treasury that collects and analyzes information to combat financial crimes, including money laundering. | Hugo Sergio Mejia | statement | Plea agreement | Admission of failure to comply with regulatory requirements | ||
| 1308 | Mejia exchanged at least $13 million. | statement | Plea agreement | Scale of financial transactions involved in the illegal operation | |||
| 1309 | Mejia met with the client at a coffee shop in Irvine and facilitated the exchange of 14.273 Bitcoin for $82,150 in cash plus fees. | statement | Plea agreement | Specific instance of illegal transaction involving Bitcoin and cash | |||
| 1310 | The client informed Mejia that his primary customer was a methamphetamine buyer in Australia who purchased methamphetamine every four to six weeks and sold it in Australia for five times more than the average price in the United States. | statement | Plea agreement | Connection to international drug trafficking | |||
| 1311 | Mejia and the client who was working with law enforcement conducted five Bitcoin-cash transactions that cumulatively exceeded $250,000. | statement | Plea agreement | Extent of transactions with law enforcement involvement | |||
| 1312 | Mejia further agreed to forfeit all assets derived from the illegal conduct, including $233,987 in cash seized from residences in Santa Ana and Ontario, silver coins and bars, and approximately $95,587 in various cryptocurrency seized. | Hugo Sergio Mejia | statement | Plea agreement | Agreement to forfeit assets obtained through illegal activities | ||
| 1313 | Once he pleads guilty to the two counts in the information, Mejia will face a statutory maximum sentence of 25 years in federal prison. | statement | Press release | Potential legal consequences for Mejia |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 1322 | Unlicensed Money Transmission Business | Mejia operated a Bitcoin exchange business without registering with FinCEN from May 2018 to September 2020. | Central to the charges, as he violated federal regulations requiring registration for money transmission services. | 18 U.S.C. § 1960 | National | May 2018 to September 2020 | Hugo Mejia, FinCEN, Law enforcement |
CourtListener / RECAP
Linked dockets
- CL #58958649 8:21-cr-00008 (cacd)
Documents
| Entry | Description | OCR | Download |
|---|---|---|---|
| #76 desc | ORDER DENYING DEFENDANT'S EMERGENCY RENEWED MOTION FOR SENTENCE REDUCTION PURSUANT TO 18 U.S.C. Sec. 3582(c)(1)(A) [Dkt. 74] by Judge Cormac J. Carney as to Hugo Sergio Mejia (1): For the foregoing reasons, Mejia's motion for compassionate release is DENIED. (see document for further information) (bm) (Entered: 08/11/2023) | none | none |
| #75 desc | OPPOSITION to NOTICE OF MOTION AND MOTION to Reduce Sentence pursuant to Compassionate Release 74 (Attachments: # 1 Exhibit A - Community Based Program Agreement between BOP and defendant)(Pang, Jason) (Entered: 07/31/2023) | none | none |
| #74 desc | EMERGENCY RENEWED MOTION to Reduce Sentence pursuant to Compassionate Release Filed by Defendant Hugo Sergio Mejia. (rolm) (Entered: 07/28/2023) | none | none |
| #73 desc | ORDER DENYING DEFENDANTS MOTION TO MODIFY IMPOSITION OF SENTENCE UNDER 18 U.S.C. §3582(c)(1)(A) [Dkt. 45; Dkt. 48] by Judge Cormac J. Carney as to Defendant Hugo Sergio Mejia 45, 48 . (twdb) (Entered: 03/21/2023) | none | none |
| #72 desc | REPLY to Government's opposition to MOTION to Reduce Sentence pursuant to Compassionate Release 48 filed by Defendant Hugo Mejia. (twdb) (Entered: 11/21/2022) | none | none |
| #71 desc | SEALED - GOVERNMENT'S STATUS UPDATE (bm) (Entered: 11/16/2022) | none | none |
| #67 desc | SEALED DOCUMENT - UNDER SEAL DOCUMENT (bm) (Entered: 11/16/2022) | none | none |
| #68 desc | SEALED - ORDER SEALING DOCUMENT (bm) (Entered: 11/16/2022) | none | none |
| #69 desc | SEALED - GOVERNMENT'S EX PARTE APPLICATION TO CONTINUE DEADLINE FOR STATUS UPDATE TO NOVEMBER 11, 2022 AND ORDER SEALING DOCUMENTS; DECLARATION OF JASON C. PANG (bm) (Entered: 11/16/2022) | none | none |
| #70 desc | SEALED - ORDER SEALING DOCUMENT (bm) (Entered: 11/16/2022) | none | none |
| #66 desc | AMENDED DOCUMENT filed by Plaintiff USA as to Defendant Hugo Sergio Mejia RE: Notice of Manual Filing (G-92) 65 . (Pang, Jason) (Entered: 11/15/2022) | none | none |
| #65 desc | NOTICE of Manual Filing of Under Seal Application; PO filed by Plaintiff USA as to Defendant Hugo Sergio Mejia (Pang, Jason) (Entered: 11/14/2022) | none | none |
| #64 desc | STATUS REPORT filed by Plaintiff USA as to Defendant Hugo Sergio Mejia, re Order on Motion to Reduce Sentence pursuant to Compassionate Release,,, 59, EX PARTE APPLICATION for Order for EX PARTE APPLICATION TO SEAL as to Defendant Hugo Sergio Mejia. 61 . (Pang, Jason) (Entered: 10/31/2022) | none | none |
| #63 desc | PROOF OF SERVICE filed by Plaintiff USA as to Defendant Hugo Sergio Mejia re Order on Motion for Order, Order on Motion to Seal Document 62, EX PARTE APPLICATION for Order for EX PARTE APPLICATION TO SEAL as to Defendant Hugo Sergio Mejia. 61, (Pang, Jason) (Entered: 10/25/2022) | none | none |
| #61 desc | SEALED GOVERNMENT'S EX PARTE APPLICATION TO CONTINUE DEADLINE FOR STATUS UPDATE TO NOVEMBER 11, 2022 AND ORDER SEALING DOCUMENTS; DECLARATION OF JASON C. PANG (lom) (Entered: 10/21/2022) | none | none |
| #62 desc | SEALED ORDER SEALING DOCUMENT (lom) (Entered: 10/21/2022) | none | none |
| #60 desc | NOTICE of Manual Filing of Ex Parte Application, Proposed Order filed by Plaintiff USA as to Defendant Hugo Sergio Mejia (Pang, Jason) (Entered: 10/20/2022) | none | none |
| #59 desc | MINUTES (IN CHAMBERS) by Judge Cormac J. Carney: ORDER DENYING EMERGENCY HEARING (Dkt. 45 ; Dkt. 48 ), 45, 48 as to Hugo Sergio Mejia (1). The Court hereby ORDERS the parties to submit a joint status update no later than 10/31/22, on whether Majia has attended an ophthalmologist appointment and any diagnosis, treatment, or other information concerning Mejia's eye condition arising out of or related to that appointment. (twdb) (Entered: 10/20/2022) | none | none |
| #56 desc | SEALED GOVERNMENT'S OPPOSITION (lom) (Entered: 10/18/2022) | none | none |
| #57 desc | SEALED GOVERNMENT'S OPPOSITION, EXHIBIT A (lom) (Entered: 10/18/2022) | none | none |
| #57 desc | SEALED GOVERNMENT'S OPPOSITION, EXHIBIT A (lom) (Entered: 10/18/2022) | none | none |
| #56 desc | SEALED GOVERNMENT'S OPPOSITION (lom) (Entered: 10/18/2022) | none | none |
| #59 | MINUTES (IN CHAMBERS) by Judge Cormac J. Carney: ORDER DENYING EMERGENCY HEARING (Dkt. 45 ; Dkt. 48 ), 45, 48 as to Hugo Sergio Mejia (1). The Court hereby ORDERS the parties to submit a joint status update no later than 10/31/22, on whether Majia has attended an ophthalmologist appointment and any diagnosis, treatment, or other information concerning Mejia's eye condition arising out of or related to that appointment. (twdb) (Entered: 10/20/2022) | none | done |
| #60 | NOTICE of Manual Filing of Ex Parte Application, Proposed Order filed by Plaintiff USA as to Defendant Hugo Sergio Mejia (Pang, Jason) (Entered: 10/20/2022) | none | done |
| #62 desc | SEALED ORDER SEALING DOCUMENT (lom) (Entered: 10/21/2022) | none | none |
| #61 desc | SEALED GOVERNMENT'S EX PARTE APPLICATION TO CONTINUE DEADLINE FOR STATUS UPDATE TO NOVEMBER 11, 2022 AND ORDER SEALING DOCUMENTS; DECLARATION OF JASON C. PANG (lom) (Entered: 10/21/2022) | none | none |
| #63 | PROOF OF SERVICE filed by Plaintiff USA as to Defendant Hugo Sergio Mejia re Order on Motion for Order, Order on Motion to Seal Document 62, EX PARTE APPLICATION for Order for EX PARTE APPLICATION TO SEAL as to Defendant Hugo Sergio Mejia. 61, (Pang, Jason) (Entered: 10/25/2022) | none | done |
| #64 | STATUS REPORT filed by Plaintiff USA as to Defendant Hugo Sergio Mejia, re Order on Motion to Reduce Sentence pursuant to Compassionate Release,,, 59, EX PARTE APPLICATION for Order for EX PARTE APPLICATION TO SEAL as to Defendant Hugo Sergio Mejia. 61 . (Pang, Jason) (Entered: 10/31/2022) | none | done |
| #65 | NOTICE of Manual Filing of Under Seal Application; PO filed by Plaintiff USA as to Defendant Hugo Sergio Mejia (Pang, Jason) (Entered: 11/14/2022) | none | done |
| #66 | AMENDED DOCUMENT filed by Plaintiff USA as to Defendant Hugo Sergio Mejia RE: Notice of Manual Filing (G-92) 65 . (Pang, Jason) (Entered: 11/15/2022) | none | done |
| #70 desc | SEALED - ORDER SEALING DOCUMENT (bm) (Entered: 11/16/2022) | none | none |
| #69 desc | SEALED - GOVERNMENT'S EX PARTE APPLICATION TO CONTINUE DEADLINE FOR STATUS UPDATE TO NOVEMBER 11, 2022 AND ORDER SEALING DOCUMENTS; DECLARATION OF JASON C. PANG (bm) (Entered: 11/16/2022) | none | none |
| #68 desc | SEALED - ORDER SEALING DOCUMENT (bm) (Entered: 11/16/2022) | none | none |
| #67 desc | SEALED DOCUMENT - UNDER SEAL DOCUMENT (bm) (Entered: 11/16/2022) | none | none |
| #71 desc | SEALED - GOVERNMENT'S STATUS UPDATE (bm) (Entered: 11/16/2022) | none | none |
| #72 | REPLY to Government's opposition to MOTION to Reduce Sentence pursuant to Compassionate Release 48 filed by Defendant Hugo Mejia. (twdb) (Entered: 11/21/2022) | none | done |
| #73 | ORDER DENYING DEFENDANTS MOTION TO MODIFY IMPOSITION OF SENTENCE UNDER 18 U.S.C. §3582(c)(1)(A) [Dkt. 45; Dkt. 48] by Judge Cormac J. Carney as to Defendant Hugo Sergio Mejia 45, 48 . (twdb) (Entered: 03/21/2023) | none | done |
| #74 | EMERGENCY RENEWED MOTION to Reduce Sentence pursuant to Compassionate Release Filed by Defendant Hugo Sergio Mejia. (rolm) (Entered: 07/28/2023) | none | done |
| #75 | OPPOSITION to NOTICE OF MOTION AND MOTION to Reduce Sentence pursuant to Compassionate Release 74 (Attachments: # 1 Exhibit A - Community Based Program Agreement between BOP and defendant)(Pang, Jason) (Entered: 07/31/2023) | none | done |
| #76 | ORDER DENYING DEFENDANT'S EMERGENCY RENEWED MOTION FOR SENTENCE REDUCTION PURSUANT TO 18 U.S.C. Sec. 3582(c)(1)(A) [Dkt. 74] by Judge Cormac J. Carney as to Hugo Sergio Mejia (1): For the foregoing reasons, Mejia's motion for compassionate release is DENIED. (see document for further information) (bm) (Entered: 08/11/2023) | none | done |
| #75 | OPPOSITION to NOTICE OF MOTION AND MOTION to Reduce Sentence pursuant to Compassionate Release 74 (Attachments: # 1 Exhibit A - Community Based Program Agreement between BOP and defendant)(Pang, Jason) (Entered: 07/31/2023) | none | done |
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