Christopher James Scanlon, CEO of Aurae Lifestyle and Club Swan, has been indicted on federal charges of operating an unlicensed crypto and fiat currency transmission business. Arrested on October 10 at Miami International Airport, Scanlon faces allegations from the U.S. Department of Justice (DOJ) of handling unregulated financial transactions on behalf of high-net-worth clients, including secretive “off-the-books” deals. The businessman, originally from Utah, pleaded not guilty in a Newark federal court.

Alleged “Ghost” Transactions

Prosecutors claim Scanlon, through entities like PMA Media Group and AU Card LLC, facilitated private transactions without adhering to federal regulations requiring money transmitters to register with the Financial Crimes Enforcement Network (FinCEN). Between 2015 and 2019, these entities allegedly provided cryptocurrency and traditional financial services without the necessary licenses. According to court filings, Scanlon carried out a “Ghost” transaction to help a client conceal a transfer from their account ledger. In one message, he reportedly replied with “Boo,” underscoring the alleged secrecy.

DOJ Pursues Compliance Breaches

The DOJ highlighted the importance of compliance in the growing cryptocurrency sector, as unlicensed transactions pose risks for illicit activity and financial instability. According to the indictment, Scanlon’s actions may have enabled clients to bypass regulatory scrutiny, raising concerns about transparency within the industry.

Potential Penalties if Convicted

Scanlon’s conspiracy charge carries a maximum five-year prison sentence and a $250,000 fine, or twice the pecuniary gain or loss caused by the offense. The businessman remains presumed innocent until proven guilty, and the case underscores the DOJ’s commitment to curbing unlicensed financial operations in the U.S.