Derry couple sentenced in federal bitcoin case

Sep. 1—A federal judge has sentenced a Derry couple, both of whom have pleaded guilty to a wire fraud charge, in a case alleging they helped Keene resident Ian Freeman, who's accused of operating an illegal Bitcoin business.

Judge Joseph Laplante on Tuesday sentenced Andrew Spinella, 36, to 18 months probation on a single count of wire fraud, according to filings in U.S. District Court of New Hampshire in Concord. Last week, Laplante sentenced Renee Spinella, 25, to time served and three years of supervised release, also on a single count of wire fraud. She had previously been incarcerated for one day after her arrest, court documents state.

The Spinellas are the latest of the alleged co-conspirators in the case to be sentenced. In late July, Laplante sentenced a Keene man who legally changed his name from Richard Paul to Nobody to time-served after he also pleaded guilty to a single count of wire fraud. On the felony wire-fraud charge, the three could have faced up to 30 years imprisonment and a fine up to $1 million.

Prosecutors claim Freeman, who is known for his libertarian activism and the radio program "Free Talk Live," and several alleged co-conspirators violated federal law by running an unlicensed virtual currency-exchange business that handled more than $10 million in transactions over several years.

Freeman's Bitcoin business, according to prosecutors, was designed to operate in violation of the Bank Secrecy Act and lacked meaningful know-your-customer and anti-money laundering procedures. In exchange for anonymity, Freeman profited from his customers, many of them criminals, paying him fees far higher than those charged by lawful bitcoin exchanges, prosecutors say.

Freeman as well as one of his alleged co-conspirators, Aria DiMezzo, another libertarian activist who lives in Keene, have pleaded not guilty to all charges. They are tentatively scheduled for trial later this year. In April, the federal government dismissed charges against an Alstead woman who had originally been indicted as a co-conspirator.

Law-enforcement authorities arrested the six in March 2021. The FBI conducted several searches in Keene one day that month, including at 73-75 Leverett St. and at two properties on Route 101.

Those properties were linked to the libertarian activist group known locally as Free Keene — which has ties to some of the defendants — because of a blog by the same name. The Route 101 searches were at 661 Marlboro Road, at a business called Bitcoin Embassy N.H., and 659 Marlboro Road, which is owned by Shire Free Church Holdings LLC. The FBI also conducted an operation at a convenience store near downtown Keene, with an employee at the time telling The Sentinel that agents removed a bitcoin ATM.

Freeman faces a total of 25 felony charges — conspiracy to operate an unlicensed money-transmitting business, operating an unlicensed money-transmitting business, conspiracy to commit wire and bank fraud, 12 counts of wire fraud, four counts of money laundering, conspiracy to commit money laundering, four counts of attempting to evade taxes, and continuing financial-crimes enterprise — after a federal grand jury in April returned a superseding indictment against him. That indictment overrode the 11 original charges he'd faced but realleged many of them.

The superseding indictment also charged DiMezzo with conspiracy to operate an unlicensed money-transmitting business as well as operating an unlicensed money-transmitting business, four counts of wire fraud and three counts of money laundering.

In a motion to dismiss filed in July, DiMezzo's lawyer, Richard Guerriero, argued that at the time prosecutors allege she and Freeman operated the illegal bitcoin exchange, federal law regulating financial businesses did not extend to cryptocurrency. Freeman has joined that motion, which asks the court to dismiss a charge of conspiracy to operate an unlicensed money-transmitting business and a charge of operating an unlicensed money-transmitting business, according to court documents.

Prosecutors state in a sentencing memorandum that Renee Spinella assisted Freeman's Bitcoin business by acting as a "bitcoin assistant," who sold bitcoin Freeman loaned to her to "customers" on Localbitcoins.com. In two years, she conducted more than 1,100 trades, totaling more than $1,150,000, the court document states.

When banks caught on to Freeman's scheme and closed his accounts, he had to hire others to open accounts in their names and in the names of fraudulent churches on his behalf, according to prosecutors. Renee Spinella helped him with this, working as a "wiring agent" for him, opening both bank accounts and virtual currency exchange accounts in his name and in the name of the "Crypto Church of New Hampshire," for the business, the sentencing memorandum states.

The government wrote in that court document that it could produce evidence showing that a Digital Federal Credit Union account and Bank of America account operated by Renee Spinella were used almost exclusively for the business, with the credit union account receiving $280,204 in deposits, including $197,885 from known fraud victims.

Renee Spinella also worked as a "vending machine courier," according to the sentencing memorandum filed by the government, collecting cash from Freeman's bitcoin ATMs and depositing the cash in accounts he controlled.

"In short, [Renee Spinella] was an integral part of Freeman's operation, and she directly participated in the day-to-day operation of the unlicensed money transmitting business," the sentencing memorandum states.

Andrew Spinella, on the other hand, is the "least culpable" of the defendants who pleaded guilty, according to the prosecution's sentencing memorandum filed in his case. In that document, the government requested that the judge sentence Andrew Spinella to one year of probation.

"Unlike Mr. Nobody and Ms. Spinella (Mr. Spinella's spouse) it does not appear that Mr. Spinella had a substantial prior relationship with Freeman or a detailed understanding about the intricacies of Freeman's business," the memorandum states.

As part of Renee Spinella's plea agreement, prosecutors agreed to drop a charge of conspiracy to operate an unlicensed money transmitting business and conspiracy to commit wire fraud as well as two counts of wire fraud against her. The judge ordered her to pay a $2,000 fine as part of her sentence, according to court documents.

Prosecutors agreed to dismiss a charge of conspiracy to operate an unlicensed money transmitting business and wire fraud against Andrew Spinella as part of his plea agreement, according to court documents.

Attorneys representing the Spinellas could not be reached for comment Wednesday.

Ryan Spencer can be reached at 352-1234, extension 1412, or rspencer@keenesentinel.com. Follow him on Twitter at @rspencerKS