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By Matthew Russell Lee, Previous Thread
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SDNY COURTHOUSE, Oct 22 – Jon Montroll pled guilty to securities fraud and obstruction of justice charges in connection with his bitcoin business through UKYO.loan, and was sentenced to 14 months in prison.

   But on October 22, more than the normal 90 day limit after sentencing, the issue of restitution has still not been finalized.   In the otherwise empty courtroom of U.S. District Court for the Southern District of New York Judge Richard M. Berman, Montroll's lawyer Daniel L. Levy of McKool Smith argued first for a lower restitution amount, then that interest be waved.

    He prevailed only on the latter, with the consent of Assistant US Attorney Andrew Thomas.

   On restitution, Judge Berman set a figure of $155,573.53, citing the September 10 testimony of SEC Senior Accountant Daphne Downes when she said "the hackers first began withdrawing funds that didnt belong to them... on July 28, 2013."

   Montroll's lawyer Levy argued that it was the hack, not Montroll's failure to disclose it, that prevented redemption of the Ukyo loans purchased before the hack.

  That argument did not prevail, but his insistance on raise the issue of interest ultimately did.

    By the elevators outside Judge Berman's courtroom Inner City Press remaked to Levy, You just kept punching.

   Levy replied, with Montroll beside him in a gray shirt without a tie, "I got it in."   

   Montroll will self-surrender for his 14 month prison term on October 28. Judge Berman has recommended the FCI camp facility Balstrop or the FCI camp facility Texarkana, both in Texas. The case is US v. Montroll, 18-cr-520 (Berman).