Rhode Island Man Guilty of Laundering Over $35 Million

News Summary

Craig Clayton, a 75-year-old from Cranston, RI, has pleaded guilty to money laundering and obstruction of justice after laundering over $35 million from internet fraud schemes. He faced charges stemming from fraudulent activities conducted through his business, Rochart Consulting, involving shell companies and manipulating financial transactions. With sentenced set for August 2025, Clayton’s actions highlight serious concerns in combatting internet fraud, especially targeting vulnerable individuals.

Rhode Island Man Pleads Guilty to Laundering Over $35 Million from Internet Fraud Schemes

Craig Clayton, a 75-year-old resident of Cranston, Rhode Island, has pleaded guilty to charges of money laundering conspiracy and obstruction of justice in a federal court located in Boston. Clayton’s actions led to the laundering of over $35 million derived from various internet fraud schemes, with his sentencing set for August 13, 2025.

Clayton’s legal troubles began when he was arrested in February 2023 following the filing of a criminal complaint against him. He operated a business called Rochart Consulting from 2019 to 2021, through which he employed illegal methods to manipulate financial transactions and conceal the origins of the fraudulently obtained funds. Evidence gathered during the investigation revealed that Clayton created multiple shell companies to establish fraudulent bank accounts in both Rhode Island and Massachusetts.

Details of the Fraud Schemes

The fraud schemes orchestrated by Clayton primarily targeted vulnerable individuals, including those seeking romantic relationships and elderly victims involved in various business scams. One notable shell company, Providence Sanitizer, falsely claimed to sell hand sanitizer while actually laundering a staggering $16.8 million. Investigators found that Clayton was not only aware of the illegal nature of his activities but also acknowledged his role as a “money mule” in communications with co-conspirators.

In a bid to evade law enforcement scrutiny, Clayton expressed concerns that his phone communications were being monitored and suggested using secure messaging app Signal to protect their conversations from police surveillance. This behavior highlights Clayton’s awareness of the illicit nature of his operations and his intent to obstruct justice.

Attempts to Mislead Authorities

During the course of the investigation into Rochart Consulting, Clayton made false claims asserting that his shell companies were legitimate businesses in an attempt to mislead federal investigators. He communicated with an undercover law enforcement agent and indicated that his business would not engage with individuals associated with law enforcement, further demonstrating his intent to deceive authorities and obstruct their inquiries.

The charges against Clayton carry significant legal repercussions. The money laundering conspiracy charge alone has a potential maximum sentence of up to 20 years in prison, accompanied by a hefty fine of $500,000 or double the amount of the proceeds. The obstruction of justice charge also holds a maximum penalty of up to 20 years in prison, with a fine of $250,000 and the possibility of three years of supervised release following his prison term.

Legal Context and Prosecution Efforts

This case is being prosecuted by Assistant U.S. Attorneys from the Securities, Financial & Cyber Fraud Unit, reflecting the severity of the financial crimes involved. The prosecution highlights a growing concern regarding internet fraud, particularly schemes targeting vulnerable populations, and emphasizes the importance of rigorous law enforcement efforts to combat such acts.

Craig Clayton’s guilty plea marks a significant development in the fight against financial fraud and the illicit activities that exploit individuals seeking online connections and business opportunities. As authorities continue to crack down on internet fraud schemes, cases like Clayton’s underscore the urgent need for vigilance and awareness among potential victims.

Deeper Dive: News & Info About This Topic

• Providence Journal
• Providence Business News
• GoLocal Prov
• The Guardian
• Wikipedia: Money laundering