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Law360, New York (March 30, 2020, 11:33 AM EDT) -- A Manhattan federal judge Monday ordered former Locke Lord LLP corporate partner Mark S. Scott released from a Miami lockup, citing enhanced health risks Scott would face were he to contract COVID-19.
![](https://assets.law360news.com/1221000/1221988/c4c13c9ead2e88b32983cded5ac0a8c4b9cae9ae-mark-scott.jpg)
Mark S. Scott outside of Manhattan federal court in November (Pete Brush | Law360)
"He is a sick individual — at greater risk of becoming seriously ill if he would contract the virus," Judge Ramos said after a 40-minute telephonic bail hearing. "There's only so much social distancing that one can do when one is in prison."
Scott was convicted in November by a Manhattan jury of helping "Cryptoqueen" Ruja Ignatova, the fugitive head of the global OneCoin cryptocurrency scam, and others launder $400 million of investors' money by creating investment entities, referred to as the Fenero funds, that funneled capital away from Bulgaria-based OneCoin and back to Ignatova. Prosecutors said Scott took in $50 million.
Scott was jailed after a friend, Marieta Halle, who had posted a $750,000 security on his behalf, told authorities she had lost confidence in him. Scott will now secure his freedom by posting some $600,000 of equity in a property his family owns, Judge Ramos said.
The judge cited Scott's heart health issues and an alleged lack of access to proper medicine in allowing him to leave FDC Miami, which currently is on lockdown and being manned by a "skeleton crew" amid the outbreak.
While COVID-19 is not believed to be rampant in the federal prison system, Judge Ramos noted there has been at least one case diagnosed in a New York City-area prison.
After the hearing, Scott's lawyer, Arlo Devlin-Brown of Covington & Burling LLP, praised the decision.
"We are pleased that the court recognized the unprecedented challenges COVID-19 poses to those incarcerated in ordering Mr. Scott's release," he told Law360 in an email.
The Manhattan U.S. attorney's office opposed bail, arguing Scott has engaged in illegal financial shenanigans since his conviction, but prosecutor Nicholas Folly conceded that Scott's health concern is a "real issue."
At least one other incarcerated lawyer who is awaiting sentencing has been denied bail in recent days. U.S. District Judge Sidney H. Stein on Friday denied bail for David L. Smith, who is jailed for tax evasion, but said Smith may revisit his application.
In another OneCoin development, Scott's former business partner David R. Pike is expected to enter a guilty plea before Judge Ramos in coming weeks. Pike has an April 9 hearing control date.
Pike has consented to the Feb. 6 filing of felony charges of bank fraud conspiracy, according to his case docket. Pike, who worked closely with Scott in managing the OneCoin funds, earned $1.2 million working on the fraud, according to a federal complaint.
Pike's lawyer had no comment.
Scott is represented by Arlo Devlin-Brown of Covington & Burling LLP and David Garvin of David M. Garvin PA.
Pike is represented by Jane Raskin of Raskin & Raskin PA.
The government is represented by Nicholas Folly and Christopher DiMase of the U.S. Attorney's Office for the Southern District of New York and Julieta Lozano of the Manhattan District Attorney's Office.
The case is U.S. v. Scott, case number 1:17-cr-00630, in the U.S. District Court for the Southern District of New York.
--Editing by Marygrace Murphy.
Update: This story has been updated with additional detail and attorney comment.
For a reprint of this article, please contact reprints@law360.com.