U.S. v. Gutemberg Dos Santos et al., 20 Cr. 398 (GBD) (Airbit Club)

On August 18, 2020, the United States Attorney’s Office announced the unsealing of an indictment charging PABLO RENATO RODRIGUEZ, GUTEMBERG DOS SANTOS, SCOTT HUGHES, CECILIA MILLAN, and JACKIE AGUILAR for their roles in an internationally coordinated fraud and money laundering ring involved in defrauding individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company.  On October 21, 2020, the United States Attorney’s Office announced the unsealing of a superseding indictment charging KARINA CHAIREZ for her role in the scheme. The case has been assigned to U.S. District Judge George B. Daniels. 

RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, AGUILAR, and CHAIREZ participated in a coordinated scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”).  Beginning in late 2015, AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN, AGUILAR and CHAIREZ, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry.  Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased.

RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, AGUILAR, and CHAIREZ traveled throughout the United States, and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships.  In furtherance of the AirBit Club Scheme, the Victims were induced to buy memberships in cash, including in the Southern District of New York.  Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”).  While Victims saw “profits” accumulate on their Online Portal, those representations were false: no Bitcoin mining or trading on behalf of Victims in fact took place.  Instead, RODRIGUEZ, DOS SANTOS, MILLAN, AGUILAR, and CHAIREZ enriched themselves, and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims. 

HUGHES, an attorney licensed to practice law in California, had previously represented RODRIGUEZ and DOS SANTOS in a Securities and Exchange Commission investigation related to another investment scheme known as Vizinova before aiding RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet. 

In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all.  In one instance, AGUILAR told one Victim of the AirBit Club Scheme who was complaining about her inability to withdraw AirBit Club returns that she should “bring new blood” into the AirBit Club Scheme in order to receive her returns.

In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the Airbit Club Terms and Conditions, due to the economic and financial crisis caused by (Covid-19).”

RODRIGUEZ, DOS SANTOS, HUGHES, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”).  The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds.  Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds.  Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme.  In total, the defendants laundered at least $20 million in proceeds of the Scheme through these various methods.

RODRIGUEZ, 37, of Irvine, California, DOS SANTOS, 45, of Panama City, Panama, and MILLAN, 37, of Greensboro, North Carolina, are each charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering.   HUGHES, 44, of Newport Beach, California, is charged with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.  AGUILAR, 55, of Plano, Texas, is charged with one count of conspiracy to commit wire fraud.  CHAIREZ, 45, of Modesto, California, is charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.

Defendant Karina Chairez pled guilty on January 31, 2023, and she is scheduled to be sentenced on October 3, 2023 at 10:00 a.m. Defendant Cecilia Millan pled guilty on February 8, 2023, and she is scheduled to be sentenced on October 3, 2023, at 9:30 a.m. Defendant Scott Hughes pled guilty on March 2, 2023, and he is scheduled to be sentenced on October 3, 2023, at 10:00 a.m. Defendant Pablo Renato Rodriguez pled guilty on March 8, 2023, and he is scheduled to be sentenced on September 26, 2023, at 11:00 a.m.  Gutemberg Dos Santos pled guilty on October 12, 2021, and he is scheduled to be sentenced on October 4, 2023, at 11:00 a.m.  Defendant Jackie Aguilar pled guilty on February 22, 2023, but prior to sentencing, she passed away, and the case against her has accordingly been dismissed.  All sentencings will take place before United States District Judge George B. Daniels in courtroom 11A in the United States Courthouse located at 500 Pearl Street, New York, NY 10007.

If you are a victim of the Airbit Club fraud, pursuant to the to the Crime Victims' Rights Act, Title 18 United States Code section 3771, you have a right to be reasonably heard at any public proceeding in this criminal case, including at sentencing of the defendants. It is helpful for the Court to know the impact of this crime on its victims, including how victims have been harmed financially, emotionally, psychologically, or in other ways.  If you would like to share with the Court how you have been impacted and/or harmed by Airbit Club, no later than June 12, 2023, please submit a written statement to the email address below explaining how you have been impacted and identifying yourself. We will ensure that the Court receives a copy of your statement in advance of sentencing the defendants in this case. If you have already submitted a written victim impact statement by email, we have received it and will provide it to the Court. In the alternative, if you would like to speak in person at any of the sentencing proceedings, please notify us by contacting the Victim/Witness Coordinator at the phone number listed below.

Updates regarding the progress of this case will be posted on this site.

The United States Attorney’s Office for the Southern District of New York is committed to protecting the rights of crime victims. If you believe you are a victim of the offense charged, our Victim/Witness Unit can make sure that you are notified of important stages of the case to help you exercise your rights. In addition, our Victim/Witness Unit is available to answer questions you might have about this case and can refer you to available resources. 

Federal crime victims have the following rights, as set forth in 18 U.S.C. § 3771:

(1) The right to be reasonably protected from the accused.
(2) The right to reasonable, accurate, and timely notice of any public court proceeding, or any parole proceeding, involving the crime or of any release or escape of the accused.
(3) The right not to be excluded from any such public court proceeding, unless the court, after receiving clear and convincing evidence, determines that testimony by the victim would be materially altered if the victim heard other testimony at that proceeding.
(4) The right to be reasonably heard at any public proceeding in the district court involving release, plea, sentencing, or any parole proceeding.
(5) The reasonable right to confer with the attorney for the Government in the case.
(6) The right to full and timely restitution as provided in law.
(7) The right to proceedings free from unreasonable delay.
(8) The right to be treated with fairness and with respect for the victim’s dignity and privacy.
(9) The right to be informed in a timely manner of any plea bargain or deferred prosecution agreement.
(10) The right to be informed of the rights under this section and the services described in section 503(c) of the Victims’ Rights and Restitution Act of 1990 (42 U.S.C. 10607(c)) and provided contact information for the Office of the Victims’ Rights Ombudsman of the Department of Justice.

For information and assistance, please contact:

Wendy Olsen Clancy
Victim/Witness Coordinator
United States Attorney’s Office
One St. Andrew’s Plaza
New York, New York 10007
(866) 874-8900
USANYS.AirbitVictims@usdoj.gov