Unity man charged in cryptocurrency fraud scheme

A 23-year-old Unity man could face 22 years in prison and lose the $942,500 house he bought near Mountain View, his Ferrari and expensive jewelry if convicted on federal accusations that he stole from executives and investors of cryptocurrency firms.

Anthony Francis Faulk was charged in California with conspiracy to commit wire fraud and using interstate communications with the intent to extort, the FBI and the U.S. Attorney in San Francisco announced Wednesday. The charges, contained in a federal grand jury indictment unsealed this week, allege some victims live in Northern California.

Faulk was arrested Wednesday near Latrobe and taken to a federal magistrate in Pittsburgh, where he was released on a $250,000 unsecured bond. He is to appear before a federal magistrate in San Francisco on Jan. 9.

Faulk could not be reached for comment. No one answered the door at his home Thursday.

Based on information from an FBI investigation, Faulk and unnamed co-conspirators are accused of targeting assets owned and controlled by executives and investors of cryptocurrency — or digital cash — companies. The indictment alleges Faulk and others engaged in a “SIM swapping” scheme from October 2016 through May 2018. A SIM card — short for Subscriber Identity Module — is a technology used to identify subscribers on mobile devices.

Prosecutors allege Faulk and others used fraud, deception and social engineering techniques to induce representatives of cellphone service providers to transfer or port cellphone numbers from SIM cards in the devices possessed by victims to SIM cards in devices held by conspirators, a practice known as SIM swapping. Faulk and his co-conspirators are accused of gaining control of victims’ cellphone numbers and using other deceptive techniques to access email, electronic storage and other accounts and, ultimately, cryptocurrency accounts.

Abraham Simmons, a spokesman for the U.S. Attorney in San Francisco, said he is not aware of charges being filed against any of Faulk’s alleged co-conspirators.

Investgators did not reveal the total amount of the alleged fraud.

If Faulk is convicted, the nine-page indictment states he must forfeit his property on Farmview Court, which he bought in February 2018; seven bank accounts; a 2018 Ferrari and a 2019 Cadillac, plus a 2019 Chevrolet Silverado and a 2018 Nissan Rogue. He also would forfeit several diamond and gold necklaces and bracelets, a Rolex watch and rights to 20 rap songs purchased through the website royaltyexchange.com.

There is not a mortgage listed on the Westmoreland County Recorder of Deeds website for Faulk’s property.

While free on bond, Faulk is not permitted to have or use a computer or cell phone with internet access.

If convicted of conspiracy to commit wire fraud, Faulk could serve a maximum 20-year prison sentence and pay a $250,000 fine. If convicted of the extortion charge, he faces a maximum two-year sentence, plus another $250,000 fine.