A Quebec businessman who stole electricity from Hydro-Québec for cryptocurrency mining was recently fined $1 million. He used nominee and shell company schemes to avoid paying a higher electricity rate.
Rajeevan Rasagopal pleaded guilty in mid-April to one count of theft of more than $5,000 at the Saint-Jérôme courthouse. He did not receive a detention sentence, but the judge sentenced him to a fine of $1 million payable to Hydro-Québec within seven years. He will also be prohibited from participating in crypto mining activities as part of his two-year probation.
The 42-year-old Saint-Jérôme resident rented warehouses used to “mine” cryptocurrency. Digital currencies, like bitcoin, are created using powerful computer servers, which require suitable ventilation systems and electrical equipment.
As the production of cryptocurrency is energy-intensive, Hydro-Québec has set dissuasive electricity rates in recent years. Rajeevan Rasagopal used several tricks to avoid these prices. Thus, the businessman registered his electricity accounts under various shell companies through nominees.
When Hydro-Québec ended up interrupting services, Rajeevan Rasagopal registered with new shell companies. He has even already moved his activities to another address to continue his scheme. In addition, the electrical installations were altered so as not to measure all the electricity consumed.
The accused knew that he was avoiding the higher rates that he should have paid to Hydro-Québec and was causing it, if necessary, harm. The accused admits to having benefited from the distribution of electricity for several hundred thousand dollars to the detriment of Hydro-Québec.
Extract from the summary of facts filed in court
Me Emmanuelle Viau-Smith represented the Director of Criminal and Penal Prosecutions, while Me Joseph Elfassy defended the accused.