Reginald Fowler, the 63-year-old former co-owner of the Minnesota Vikings, has been sentenced to six years in prison for his involvement in operating as a “shadow bank” to the crypto sector. The sentencing comes after a lengthy five-year legal battle culminating in Fowler changing his plea to guilty in April 2022.
Fowler’s illicit activities came to light in 2019 when he was arrested for alleged shadow banking involving bank-like activities without proper authorization. The case involved over $700 million in unregulated transactions spanning 10 months in 2018.
According to the United States Attorney’s Office in New York, Fowler utilized a web of deception, lies, and false pretenses to mislead various banks, enabling him to process hundreds of millions of dollars in unregulated transactions on behalf of cryptocurrency exchanges. By doing so, Fowler evaded federal law and exposed the U.S. financial system to significant risks.
Furthermore, Fowler’s deceit extended beyond the realm of cryptocurrency. He misled the Alliance of American Football (AAF), a former professional football league, about his net worth to acquire a substantial stake in the league. This manipulation victimized the AAF and its stakeholders.
Fowler’s criminal enterprise revolved around establishing Global Trading Solutions (GTS) in early 2018. Collaborating with crypto firms such as Crypto Capital, based in Israel, Fowler and GTS engaged in illegal activities by lying to banks to open accounts for processing crypto transactions.
These accounts, numbering a dozen, were operated without the knowledge or authorization of the banks involved, and Fowler failed to disclose GTS’s relationship with the crypto firms.
The charges against Fowler included bank fraud conspiracy, operating an unlicensed money-transmitting business, wire fraud, and conspiracy to operate an unlicensed money-transmitting business. In addition to his prison sentence, Fowler has been ordered to forfeit an astounding $740 million and pay over $53 million in restitution to the AAF.
This landmark case serves as a stark reminder that those who engage in deceptive practices to skirt the law will face the full force of prosecution. U.S. Attorney Damian Williams emphasized the commitment to prosecuting individuals who lie to banks and manipulate the system for personal gain.
With Fowler’s sentencing, the authorities have sent a clear message to the crypto sector and beyond that illegal activities will not be tolerated, and the integrity of the financial system must be safeguarded.
