The Cuyahoga County prosecutor's office indicted a cryptocurrency ATM company, its founder and two others, saying the company profited from scammers who convinced people to deposit millions into its machines.
Illinois-based S and P Solutions owns and operates Bitcoin of America ATM kiosks, which exchange cryptocurrency for cash deposited in the machines. The machines were placed at gas stations, convenience stores and other businesses in Northeast Ohio.
The company's founder, Sonny Meraban, was arrested Wednesday in Miami Beach. His father, Reza Mehraban, and a lawyer who worked for the company, William Suriano, were arrested near Chicago.
Cuyahoga County Attorney Mike O'Malley said at a press conference announcing the indictments Thursday that 52 of the company's cryptocurrency kiosks were seized in Cuyahoga and Lorain counties.
โAll these warrants were executed yesterday, there were over 100 law enforcement officers involved and it was a very complex operation,โ O'Malley said.
The three men are charged with 59 counts in Cuyahoga County Common Pleas Court, including conspiracy, engaging in a pattern of corrupt activity, operating the kiosks without a license, tampering with records and money laundering.
According to the researchers, Bitcoin of America ATMs were preferred by scammers who called victims and convinced them to deposit money into the machines. When victims deposited cash, 20% went to Meraban's company.
Law enforcement officials said the scammers were sending their victims to Bitcoin of America machines because they failed to follow security measures intended to prevent these types of fraudulent transactions.
According to an indictment filed in Cuyahoga County on February 22 and unsealed Wednesday, Meraban is related to illegal transactions involving 13 people in Cuyahoga County between 2020 and 2023.
O'Malley said Thursday that there are likely more victims.
Meraban founded the company in 2015 after selling supplements online and, according to a 2021 articlehas placed machines in 25 states.
The prosecutor's office seeks to bring the three men to Cuyahoga County for a court appearance on March 22. The indictment also calls for the seizure of bank accounts, several Mercedes-Benzes, a Lamborghini, real estate and a speedboat purchased with the proceeds of the transactions.
