A federal jury has found a man guilty of fraud using cryptocurrency companies, sham business ventures, and false investment guarantees.
Daniel Chartraw, 53, formerly of South Lake Tahoe and Lodi, was found responsible for a wide-ranging series of fraudulent schemes.
According to evidence presented at trial, between March 2021 and February 2022, Chartraw and an associate controlled multiple companies, including Crypto‑Pal LLC and TDA Global LLC.
Chartraw and individuals acting on his behalf represented that Crypto‑Pal was a web‑based cryptocurrency trading company that guaranteed high returns with no risk. At various points, Chartraw also claimed that TDA Global was engaged in supplying jet fuel to airlines or operated its own cryptocurrency trading platform.
“This verdict sends a clear message: individuals who exploit the trust of others and steal through deception will be held accountable,” said U.S. Attorney Eric Grant. “The defendant lied to investors and caused serious financial and emotional harm. Our office will continue to pursue those who use emerging technologies, including cryptocurrency, as vehicles for fraud.”
Chartraw communicated with potential and existing investors through phone calls, text messages, email, and virtual meetings using platforms such as Microsoft Teams and Zoom. Although he was directing operations, Chartraw frequently used aliases such as “Leonard” or “Leon,” telling associates that he needed to conceal his identity because of a prior fraud conviction. Despite this, many investors ultimately learned that Chartraw—not “Leonard”—was controlling the businesses and their accounts.
Even though Chartraw was not a signatory on the Crypto‑Pal business bank account, he repeatedly accessed it to withdraw cash, make purchases, and transfer investor funds to accounts he personally controlled.
Chartraw also cultivated trust through personal and professional relationships, using fabricated account statements, false assurances of growth, and repeated misrepresentations to persuade victims to invest additional funds. When investors attempted to recover their money or questioned delays, he provided excuses, deflected responsibility, or stopped communicating altogether.
In several cases, individuals were referred to him through friends or family and were convinced to transfer cryptocurrency or cash, based on promises that their money would be actively traded. None of these funds was ever invested as represented.
Across all schemes, investors received neither returns nor the return of their principal. The total loss to investors was nearly $1 million.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jessica Delaney and J. Douglas Harman are prosecuting the case.
Chartraw is scheduled to be sentenced by Senior U.S. District Judge William B. Shubb on Sept. 28, 2026. Chartraw faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.
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