In a stunning turn of events, Texas federal prosecutors have decided to drop a significant money laundering charge against Edward Constantinescu, a “meme-stock” trader who was set to face trial for his alleged involvement in a massive $114 million pump-and-dump scheme. This unexpected move is poised to reshape the landscape of the upcoming April trial, allowing Constantinescu to take an unexpected turn in his legal journey.
A Shift in the Prosecution’s Strategy
The decision to drop the money laundering charge, which accused Constantinescu of utilizing fraudulent proceeds to purchase a house, is expected to significantly narrow the focus of the impending trial. By shedding this weighty accusation, prosecutors aim to create an opportunity for Constantinescu to liquidate the property and utilize the funds for his legal defense.
According to a filing made on Wednesday, Constantinescu has maintained that he is unable to fully fund his defense, although concrete proof remains elusive. This intriguing development adds a layer of perplexity to the case.
Meme Stock Trader Laundering Charge Drop : The Meme Stock Saga Unfolds
Constantinescu was one of eight individuals charged in December 2022 with securities fraud in a “meme stock” scheme that sent shockwaves through the financial world. In a superseding indictment filed in February, the number of securities fraud charges was raised from 10 to 19, while a conspiracy charge and the now-dropped money laundering charge remained intact.
