Businessman Charged with Conspiring to Own Unlicensed Money Transmitting Business
2024-10-24 · Press release
Mentions 1960 Crypto Verified 1960
Summary: NEWARK, N.J. – A businessman and former resident of Utah has been charged with illegally operating an unlicensed money transmitting business.
NEWARK, N.J. – A businessman and former resident of Utah has been charged with illegally operating an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced today.
Christopher James Scanlon, 43, originally from Utah and now living in Florida, is indicted on one count of conspiring to control and own an unlicensed money transmitting business. Scanlon was arrested at Miami International Airport on Oct. 10, 2024, and made his initial appearance in U.S. District Court for the Southern District of Florida on Oct. 11, 2024. He was arraigned today before U.S. Magistrate Judge Lede Dunn Wettre in Newark federal court and pleaded not guilty.
According to documents filed in this case and statements made in court:
Scanlon is the founder and chief executive officer of businesses Aurae Lifestyle and Club Swan. From as early as 2015 through 2019, Scanlon controlled a series of legal entities – PMA Media Group Inc.; AU Card LLC; AU Card Ltd., and Nvayo Ltd., (collectively, the “AU Entities”) – that he operated as a money transmitting business to provide fiat and cryptocurrency financial services to customers of Aurae Lifestyle. Scanlon served as a customer service representative for several high-net-worth Aurae Lifestyle customers. Scanlon operated Aurae Lifestyle during this time period without appropriately registering as a money transmitting business with FinCEN.
At times, Scanlon agreed to conduct transactions on behalf of customers through other customers’ accounts and performed at least one “off the books” transaction for a customer who was later indicted for operating a large-scale cryptocurrency mining scheme. Scanlon exchanged messages with the customer, who requested that the transaction be kept off of the customer’s account ledger as a “Ghost” transaction. Scanlon agreed, and upon completing the transaction, the customer asked Scanlon to confirm that the transaction was not posted on the ledger of his Aurae Lifestyle account, asking Scanlon: “Ghost, right?,” to which Scanlon confirmed: “Boo.”
The conspiracy count carries a maximum term of five years in prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whatever is greatest.
U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jennifer L. Piovesan, with the investigation.
The government is represented by Assistant U.S. Attorneys Megan Linares of the Cybercrime Unit, and Aaron Webman of the Economic Crimes Unit, in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
- district_office
- District of New Jersey
- usa_name
- Philip R. Sellinger
- event_type
- indictment
- judge_name
- Lede Dunn Wettre
- judge_title
- U.S. Magistrate Judge
- case_number
- max_penalty_text
- carries a maximum term of five years in prison and a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whatever is greatest.
- sentence_summary
- money_amounts
- $250,000
- crypto_assets
- statutes_json
- timeline_json
- {"indictment_date": null, "plea_date": null}
- press_release_url
- https://www.justice.gov/usao-nj/pr/businessman-charged-conspiring-own-unlicensed-money-transmitting-business-0
- extras_json
| participant_id | name | role | title | organization | location | age | nationality | status |
|---|---|---|---|---|---|---|---|---|
| 1046 | Christopher James Scanlon | defendant | Aurae Lifestyle, Club Swan | Florida | 43 | pleaded not guilty | ||
| 1047 | Philip R. Sellinger | prosecutor | U.S. Attorney | U.S. Attorney's Office | Newark, N.J. | |||
| 1048 | Lede Dunn Wettre | judge | U.S. Magistrate Judge | Newark federal court | Newark, N.J. | |||
| 1049 | Jennifer L. Piovesan | investigator | Special Agent in Charge | IRS - Criminal Investigation | ||||
| 1050 | Megan Linares | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office | Newark | |||
| 1051 | Aaron Webman | prosecutor | Assistant U.S. Attorney | U.S. Attorney's Office | Newark |
| agency_id | agency_name | abbreviation | role | office_location | agents_mentioned | contribution |
|---|---|---|---|---|---|---|
| 689 | U.S. Attorney's Office | USAO | prosecution | Newark, New Jersey | Megan Linares, Aaron Webman | Prosecuting the case and representing the government in court |
| 690 | Internal Revenue Service - Criminal Investigation | IRS-CI | investigation | Jennifer L. Piovesan | Led the investigation into the unlicensed money transmitting business operations |
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 520 | conspiring to control and own an unlicensed money transmitting business | five years in prison | $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whatever is greatest | Christopher James Scanlon | indicted | 1 | enrichment | 2026-09-16T19:45:54+00:00 | ||||||
| 2484 | operating an unlicensed money transmitting business, U | 1 | press | 2026-09-16T19:45:54+00:00 | ||||||||||
| 2485 | unlicensed money transmitting business, U | 1 | press | 2026-09-16T19:45:54+00:00 | ||||||||||
| 2486 | unlicensed money transmitting business | 1 | press | 2026-09-16T19:45:54+00:00 |
| fin_id | action_type | amount | currency | description | asset_type | defendant | status |
|---|---|---|---|---|---|---|---|
| 141 | fine | $250,000 | USD | Fine for conspiring to own unlicensed money transmitting business | cash | Christopher James Scanlon | pending |
| victim_id | victim_type | description | number_affected | loss_amount | geographic_scope | vulnerability_factors | impact_description |
|---|---|---|---|---|---|---|---|
| 101 | business | customers of Aurae Lifestyle | Unspecified financial losses due to unlicensed money transmitting services |
| quote_id | quote_text | speaker_name | speaker_title | speaker_organization | quote_type | context | significance |
|---|---|---|---|---|---|---|---|
| 73 | Ghost, right? | message | Customer requesting an 'off the books' transaction | Indicates intent to conceal financial activity from regulators | |||
| 74 | Boo. | Christopher James Scanlon | Founder/CEO of Aurae Lifestyle | Aurae Lifestyle | response | Confirmation of 'Ghost' transaction execution | Demonstrates participation in unlicensed money transmission and evasion of regulatory oversight |
| theme_id | theme_name | description | significance | related_statutes | geographic_scope | temporal_aspects | stakeholders |
|---|---|---|---|---|---|---|---|
| 558 | Unlicensed Money Transmitting Business | Scanlon operated Aurae Lifestyle and other entities as unregistered money transmitting businesses providing fiat and cryptocurrency services from 2015-2019. | Central to the charges under 18 U.S.C. § 1960 for operating without FinCEN registration. | 18 U.S.C. § 1960 | International | Historical trend | FinCEN, Law enforcement, Customers |
| 559 | Cryptocurrency Financial Services | The AU Entities provided cryptocurrency financial services alongside fiat transactions to customers. | Highlights integration of cryptocurrency in the unlicensed operations. | 18 U.S.C. § 1960 | International | Historical trend | Customers, Financial institutions |
| 560 | Conspiracy to Operate Unlicensed Business | Scanlon conspired to control and own the unlicensed money transmitting business. | Primary charge leading to potential penalties under 18 U.S.C. § 1960. | 18 U.S.C. § 1960 | International | Historical trend | Law enforcement, Defendant |
| 561 | Off-the-Books Transactions | Scanlon conducted a concealed 'Ghost' transaction for a customer involved in a cryptocurrency mining scheme. | Evidence of intent to evade regulatory oversight. | 18 U.S.C. § 1960 | National | Historical trend | Customers, Defendant |
| 562 | High-Net-Worth Customers | Scanlon provided customer service to high-net-worth clients of Aurae Lifestyle. | Indicates targeting of affluent clientele, suggesting scale and intent. | National | Historical trend | Customers, Business entities |
CourtListener / RECAP
Linked dockets
- CL #69271531 2:24-cr-00682 (njd)
Documents
| Entry | Description | OCR | Download |
|---|---|---|---|
| entry desc | Recognizance Number DE 13 as to CHRISTOPHER JAMES SCANLON has been cancelled (Finance Notified). (dam) | none | none |
| entry desc | Notice of Allocation and Assignment as to CHRISTOPHER JAMES SCANLON (Newark Judge Claire C. Cecchi). (JB) | none | none |
| #47 desc | ORDER MODIFYING CONDITIONS OF RELEASE as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Michael A. Hammer on 8/6/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 08/13/2024) | none | none |
| #46 desc | ORDER TO CONTINUE - Ends of Justice as to CHRISTOPHER JAMES SCANLON Time excluded from 8/5/2024 until 9/20/2024. Signed by Magistrate Judge Michael A. Hammer on 8/6/2024. (nic, ) [2:23-mj-10168-MAH] (Entered: 08/07/2024) | none | none |
| #45 desc | MOTION to Modify Conditions of Release by CHRISTOPHER JAMES SCANLON. (Attachments: # 1 Text of Proposed Order)(KILZY, MEGAN) [2:23-mj-10168-MAH] (Entered: 08/03/2024) | none | none |
| #44 desc | TRAVEL ORDER as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Michael A. Hammer on 7/3/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 07/03/2024) | none | none |
| #43 desc | NOTICE OF ATTORNEY APPEARANCE ANTHONY P TORNTORE appearing for USA. Attorney SOPHIE ELIZABETH REITER terminated. (TORNTORE, ANTHONY) [2:23-mj-10168-MAH] (Entered: 07/01/2024) | none | none |
| #42 desc | Letter from Michael Weinstein (Attachments: # 1 Text of Proposed Order)(KILZY, MEGAN) [2:23-mj-10168-MAH] (Entered: 07/01/2024) | none | none |
| #41 desc | Substitution of Attorney - Attorney MICHAEL S. WEINSTEIN for CHRISTOPHER JAMES SCANLON added. Attorney JONATHAN BOLZ terminated. (WEINSTEIN, MICHAEL) [2:23-mj-10168-MAH] (Entered: 06/25/2024) | none | none |
| #40 desc | ORDER TO CONTINUE - Ends of Justice as to CHRISTOPHER JAMES SCANLON Time excluded from 6/11/2024 until 8/7/2024. Signed by Magistrate Judge Michael A. Hammer on 6/11/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 06/11/2024) | none | none |
| #39 desc | TRAVEL ORDER as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Jessica S. Allen on 5/10/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 05/10/2024) | none | none |
| #38 desc | ORDER MODIFYING CONDITIONS OF RELEASE as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Michael A. Hammer on 4/17/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 05/06/2024) | none | none |
| #37 desc | ORDER TO CONTINUE - Ends of Justice as to CHRISTOPHER JAMES SCANLON Time excluded from 4/3/2024 until 6/7/2024. Signed by Magistrate Judge Michael A. Hammer on 4/3/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 04/04/2024) | none | none |
| #36 desc | TRAVEL ORDER as to CHRISTOPHER JAMES SCANLON - Travel permitted from 3/30/2024 to 4/1/2024. Signed by Magistrate Judge Michael A. Hammer on 3/26/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 03/26/2024) | none | none |
| #35 desc | ORDER MODIFYING CONDITIONS OF RELEASE as to CHRISTOPHER JAMES SCANLON - Travel permitted from 3/9/2024 to 3/11/2024. Signed by Magistrate Judge Michael A. Hammer on 3/7/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 03/07/2024) | none | none |
| #34 desc | ORDER granting 32 MOTION to Withdraw as Attorney filed by CHRISTOPHER JAMES SCANLON., Attorney EDWARD YOUNG KIM terminated in case as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Michael A. Hammer on 2/2/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 02/02/2024) | none | none |
| #33 desc | ORDER TO CONTINUE - Ends of Justice as to CHRISTOPHER JAMES SCANLON Time excluded from 2/1/2024 until 4/5/2024. Signed by Magistrate Judge Michael A. Hammer on 2/1/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 02/02/2024) | none | none |
| #32 desc | MOTION to Withdraw as Attorney by CHRISTOPHER JAMES SCANLON. (BOLZ, JONATHAN) [2:23-mj-10168-MAH] (Entered: 01/31/2024) | none | none |
| #31 desc | CONSENT ORDER MODIFYING CONDITIONS OF RELEASE as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Jessica S. Allen on 12/21/2023. (jqb, ) (Main Document 31 replaced on 3/7/2024) (jqb, ). [2:23-mj-10168-MAH] (Entered: 12/21/2023) | none | none |
| #30 desc | MOTION to Modify Conditions of Release by CHRISTOPHER JAMES SCANLON. (Attachments: # 1 Proposed Order)(BOLZ, JONATHAN) [2:23-mj-10168-MAH] (Entered: 12/21/2023) | none | none |
| #30 desc | MOTION to Modify Conditions of Release by CHRISTOPHER JAMES SCANLON. (Attachments: # 1 Proposed Order)(BOLZ, JONATHAN) [2:23-mj-10168-MAH] (Entered: 12/21/2023) | none | none |
| #31 desc | CONSENT ORDER MODIFYING CONDITIONS OF RELEASE as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Jessica S. Allen on 12/21/2023. (jqb, ) (Main Document 31 replaced on 3/7/2024) (jqb, ). [2:23-mj-10168-MAH] (Entered: 12/21/2023) | none | none |
| #32 desc | MOTION to Withdraw as Attorney by CHRISTOPHER JAMES SCANLON. (BOLZ, JONATHAN) [2:23-mj-10168-MAH] (Entered: 01/31/2024) | none | none |
| #33 desc | ORDER TO CONTINUE - Ends of Justice as to CHRISTOPHER JAMES SCANLON Time excluded from 2/1/2024 until 4/5/2024. Signed by Magistrate Judge Michael A. Hammer on 2/1/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 02/02/2024) | none | none |
| #34 desc | ORDER granting 32 MOTION to Withdraw as Attorney filed by CHRISTOPHER JAMES SCANLON., Attorney EDWARD YOUNG KIM terminated in case as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Michael A. Hammer on 2/2/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 02/02/2024) | none | none |
| #35 desc | ORDER MODIFYING CONDITIONS OF RELEASE as to CHRISTOPHER JAMES SCANLON - Travel permitted from 3/9/2024 to 3/11/2024. Signed by Magistrate Judge Michael A. Hammer on 3/7/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 03/07/2024) | none | none |
| #36 desc | TRAVEL ORDER as to CHRISTOPHER JAMES SCANLON - Travel permitted from 3/30/2024 to 4/1/2024. Signed by Magistrate Judge Michael A. Hammer on 3/26/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 03/26/2024) | none | none |
| #37 desc | ORDER TO CONTINUE - Ends of Justice as to CHRISTOPHER JAMES SCANLON Time excluded from 4/3/2024 until 6/7/2024. Signed by Magistrate Judge Michael A. Hammer on 4/3/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 04/04/2024) | none | none |
| #38 desc | ORDER MODIFYING CONDITIONS OF RELEASE as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Michael A. Hammer on 4/17/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 05/06/2024) | none | none |
| #39 desc | TRAVEL ORDER as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Jessica S. Allen on 5/10/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 05/10/2024) | none | none |
| #40 desc | ORDER TO CONTINUE - Ends of Justice as to CHRISTOPHER JAMES SCANLON Time excluded from 6/11/2024 until 8/7/2024. Signed by Magistrate Judge Michael A. Hammer on 6/11/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 06/11/2024) | none | none |
| #41 desc | Substitution of Attorney - Attorney MICHAEL S. WEINSTEIN for CHRISTOPHER JAMES SCANLON added. Attorney JONATHAN BOLZ terminated. (WEINSTEIN, MICHAEL) [2:23-mj-10168-MAH] (Entered: 06/25/2024) | none | none |
| #42 desc | Letter from Michael Weinstein (Attachments: # 1 Text of Proposed Order)(KILZY, MEGAN) [2:23-mj-10168-MAH] (Entered: 07/01/2024) | none | none |
| #43 desc | NOTICE OF ATTORNEY APPEARANCE ANTHONY P TORNTORE appearing for USA. Attorney SOPHIE ELIZABETH REITER terminated. (TORNTORE, ANTHONY) [2:23-mj-10168-MAH] (Entered: 07/01/2024) | none | none |
| #44 desc | TRAVEL ORDER as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Michael A. Hammer on 7/3/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 07/03/2024) | none | none |
| #45 desc | MOTION to Modify Conditions of Release by CHRISTOPHER JAMES SCANLON. (Attachments: # 1 Text of Proposed Order)(KILZY, MEGAN) [2:23-mj-10168-MAH] (Entered: 08/03/2024) | none | none |
| #46 desc | ORDER TO CONTINUE - Ends of Justice as to CHRISTOPHER JAMES SCANLON Time excluded from 8/5/2024 until 9/20/2024. Signed by Magistrate Judge Michael A. Hammer on 8/6/2024. (nic, ) [2:23-mj-10168-MAH] (Entered: 08/07/2024) | none | none |
| #47 desc | ORDER MODIFYING CONDITIONS OF RELEASE as to CHRISTOPHER JAMES SCANLON. Signed by Magistrate Judge Michael A. Hammer on 8/6/2024. (jqb, ) [2:23-mj-10168-MAH] (Entered: 08/13/2024) | none | none |
| 476070156 desc | Notice of Allocation and Assignment as to CHRISTOPHER JAMES SCANLON (Newark Judge Claire C. Cecchi). (JB) | none | none |
| 476070174 desc | Recognizance Number DE 13 as to CHRISTOPHER JAMES SCANLON has been cancelled (Finance Notified). (dam) | none | none |
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