Vincent Anthony Mazzotta Jr., a 54-year-old man from Arizona, has admitted in court that he played a major role in a cryptocurrency investment scam that took more than $13 million from unsuspecting victims. Promising fast and high returns through artificial intelligence and automated trading bots, Mazzotta and his co-conspirators built a fake world of high-tech riches that turned out to be nothing but lies.
The scheme targeted people who were eager to invest in the booming crypto market. Instead of helping them grow their money, Mazzotta and his team stole it. He also tried to cover up the crime by destroying evidence and faking business records.
High Promises, Big Lies: The Scam That Fooled Investors
Vincent Mazzotta, who also used names like Vincent Midnight, Delta Prime, and Director Vinchenzo, joined forces with co-defendant David Saffron to build a scheme that looked smart and modern. They claimed they had special robots powered by artificial intelligence that could trade cryptocurrencies like Bitcoin and make big profits in just days.
They created investment companies such as Mind Capital and Cloud9Capital and told investors their money was safe and growing. But in reality, these companies were fake. The only thing that grew was the pile of money being stolen.
People trusted them and sent their hard-earned crypto. But after millions had been collected, the companies suddenly vanished—along with the money.
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Authorities say more than $13 million was stolen before the scheme was exposed.
Fake Government Group Added to the Lies
After their made-up investment platforms disappeared, Mazzotta and Saffron created another illusion to keep the scam alive. They introduced a phony agency called the Federal Crypto Reserve (FCR), which they claimed was a government-backed group that could help victims recover their lost money.
But this group wasn’t real either.
Instead, victims were asked to pay even more money to “hire” the FCR to investigate the very companies—Mind Capital and Cloud9Capital—that had scammed them. Many of the victims, desperate for justice, paid thousands more.
“The defendants pretended to be part of the U.S. government to make their scams look real,” said Tyler Hatcher, Special Agent in Charge at the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “This guilty plea shows our strong commitment and unique ability to uncover even the most complex financial crimes, no matter how carefully they are hidden.”
Cover-Up Efforts and What Comes Next
After David Saffron was arrested, Vincent Mazzotta took steps to hide their crimes. He and others entered Saffron’s apartment and destroyed critical evidence, including an iPad and the contents of a personal safe.
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Mazzotta also worked to hide his tracks by altering business records of Runway Beauty Inc., making it look like he had no part in the fraud. These changes were meant to mislead a federal grand jury that was investigating the case.
Eventually, federal investigators connected all the pieces. The case was handled by the IRS-CI, the Justice Department’s Criminal Division, and the U.S. Attorney’s Office for the Central District of California.
“Vincent Mazzotta tricked investors through a complex cryptocurrency scam and made things even worse by creating a fake government agency to continue taking advantage of the very people who trusted him with their money,” said Acting Assistant Attorney General Matthew R. Galeotti.
“Investments like Bitcoin and other cryptocurrencies might seem exciting, but their newness also makes it easier for criminals to take advantage of people,” said U.S. Attorney Bill Essayli.
Vincent Mazzotta has now pleaded guilty to one count of money laundering and one count of conspiracy to obstruct justice. He could face up to 10 years in prison for money laundering and up to 5 years for trying to cover up the crime.
The case is being handled by Trial Attorneys Theodore Kneller and Siji Moore from the Justice Department’s Fraud Section, along with Assistant U.S. Attorney James Hughes from the Central District of California. A federal judge will decide Mazzotta’s sentence.