United States District Court, S.D. Florida
PRETRIAL DETENTION ORDER
WILLIAM MATTHEWMAN, UNITED STATES MAGISTRATE JUDGE
to 18 U.S.C. §§ 3142(b), (e), and (f), the Court
hereby ORDERS Defendant Jobadiah Sinclair Weeks detained.
Government urges the Court to order Defendant's pretrial
detention because he is a substantial or serious risk of
flight or nonappearance. After conducting a detention hearing
in this case on December 17, 2019, the Court finds that no
condition or combination of conditions will reasonably assure
Defendant's appearance if he is released. Defendant must
be detained as a serious risk of flight or nonappearance. The
Court makes the following findings of fact with respect to
The nature and circumstances of the offense charged,
including whether the offense is a crime of
violence or involves a narcotic drug.
is charged by indictment with one count of conspiracy to
commit wire fraud in violation of 18 U.S.C. § 1349 and
one count of conspiracy to offer and sell unregistered
securities in violation of 18 U.S.C. § 371. If convicted
of count one, he faces up to 20 years imprisonment. If
convicted of count two, he faces up to 5 years imprisonment.
the offenses Defendant is charged with are not crimes of
violence and do not involve narcotics, the charges are very
serious and involve an alleged large-scale $722
million-dollar lengthy fraud involving cryptocurrency.
The weight of the evidence against Defendant.
grand jury has issued an indictment, thereby finding that
probable cause supports both counts. The weight of the
evidence against Defendant is substantial. The Court takes
judicial notice of the information in the Indictment [DE 1]
and the Pretrial Services Report. The following evidence was
established by the Indictment, exhibits introduced at the
detention hearing, the Pretrial Services Report, and the
is alleged to have promoted BitClub Network
("BCN"), which the Government alleges "was a
worldwide fraudulent scheme that solicited money from
investors in exchange for shares of pooled investment in
cryptocurrency mining and that rewarded existing investors
for recruiting new investors." [DE 1, ¶ 1(a)].
Specifically, per the Indictment, Defendant promoted BCN to
potential investors and advised BCN's owners and
operators on how to solicit investments from
"sophisticated investors." Defendants also
allegedly conspired to sell unregistered securities. In or
around December 2015, the Government alleges that Defendant
messaged one of BCN's owners and advised that:
We really should have [September] stats and [October] stats
and [November] stats. The sophisticated investors with a lot
of cash are hesitant with putting in big cash because they
want to see the mining contract, the receipt or title to the
mining equipments [sic], proof that they own something in
return, how much the mine made and what the mine paid out to
each share holder so they can calculate what a share is worth
etc. Bitclub pool doesn't tell us how many share holders
have etc. Its not transparent enough for the big big money
Id. at ¶ 4(g)(xi). In or around June 2017, the
Government alleges Defendant emailed one of his
co-defendants, Matthew Brent Goettsche, observing that BCN
"can't just 'sell' people mining hardware
(shares) in Bitclub and then not use the money to buy
equipment. Its not right. Bitclub makes 20% regardless of the
price," Id. at ¶ 4(g)(xii). Further, the
Government alleges that Defendant and his co-conspirators
"encouraged U.S. investors to utilize a [Virtual Private
Network] to obscure their true, U.S.-based [Internet
Provider] addresses so that BCN and the Defendants could
avoid detection and regulation by U.S. law enforcement."
Id. at ¶ 5(g). The Government also alleges
Defendant promoted BCN on the Internet, created promotional
videos, and gave speeches and presentations to potential
investors across the world.
Defendant's history and characteristics.
Court takes judicial notice of the Indictment and the
Pretrial Services Report. Defendant is a 38-year-old male who
lives a largely nomadic international lifestyle. He is
married with one 13-month-old child. He, his wife, and his
child travel extensively throughout the world approximately
ten months each year. For at least the past 20 years,
Defendant has used his parents' address in Colorado,
where he stays only sporadically, as his home address and
does not have a ...