Ex-Minnesota Vikings co-owner sent to prison in $700M cyrptocurrency shadow bank scam

A former co-owner of the NFL's Minnesota Vikings who defrauded another pro football league will spend more than six years behind bars for his role in a $700 million cryptocurrency scam.

Reggie Fowler was sentenced to 75 months in prison Monday in New York after admitting his guilt in April 2022 to five federal criminal charges, including wire and bank fraud and conspiracy to operate an unlicensed money-transmitting business, prosecutors said.

As part of taking a plea deal, Fowler also admitted to defrauding those connected with the failed Alliance of American Football, known as the AAF, in 2018. The businessman from suburban Phoenix Arizona was an early investor in the doomed pro football league, which claimed to be an alternative to the NFL. The AAF shut down in April 2019 after only eight weeks of play.

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Fowler moved quickly, making millions on his crypto scam prosecutors allege

Prosecutors claim that Fowler, 64, evaded federal law by processing hundreds of millions of dollars of unregulated transactions on behalf of cryptocurrency exchanges as a shadow bank. He created Global Trading Solutions LLC, which worked with a company called Crypto Capital that allowed cryptocurrency exchanges to swap their digital currencies for cash, prosecutors allege.

Fowler was accused of opening dozens of accounts at bank locations across the U.S. and worldwide by falsely claiming the accounts were for real estate investment transactions when they were actually meant to handle quick scheme crypto transactions, prosecutors claimed. Fowler played "a critical role in a serious criminal enterprise" by lying to the banks that could have possibly faced regulatory action for supporting an unlicensed money services business, prosecutors added.

"In less than 10 months, Fowler processed approximately $750 million in cryptocurrency transactions in various currencies," according to court filings. "At no point were Fowler, Global Trading Solutions, nor any of the Crypto Companies ever licensed as a money transmitting business in the United States, as required by federal law."

On Monday, U.S. Attorney Damian Williams for the Southern District of New York said in a statement, "Let it be clear: this Office is committed to prosecuting people who lie to banks and skirt the law as a means to conduct their business."

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Fowler yearned to be a pro football owner

Fowler was part of a group of investors that bought the Vikings in 2005 before giving up his stake in the NFL team in 2014. Fowler made headlines when he initially wanted to purchase the team but didn't have enough capital. He eventually bought a minority stake with majority owner Zygi Wilf.

Fowler gave up his share of the team as a limited partner in 2014. Published reports said Fowler was having financial troubles in Arizona in 2013 after he lost control of his companies and accumulated almost $60 million in debt.

But Fowler still yearned to be in pro football when he made ties with the Alliance of American Football. Prosecutors claim Fowler lied to AAF executives when he claimed to control bank accounts with tens of millions of dollars from real estate investments and had government contracts that he could use to help fund the league.

However, Williams said that Fowler victimized the AAF "by lying about his net worth in exchange for a substantial portion of the league."

As part of his prison sentence, Fowler has been ordered to forfeit $740 million and pay restitution of $53 million to the AAF.

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This article originally appeared on USA TODAY: Ex-NFL co-owner Reggie Fowler sentenced in crypto shadow bank scam