SEC Charges 17 in $300 Million Crypto Ponzi Scheme Targeting Latinos

© Reuters.

The Securities and Exchange Commission (SEC) has charged 17 individuals associated with CryptoFX LLC, a Texas-based company, for orchestrating a Ponzi scheme that amassed $300 million by defrauding island of more than 40,000 investors, primarily in the Latino community. The SEC's legal action, announced today, follows an emergency intervention in September 2022 that initially disrupted the fraud and charged the company's main operators, Mauricio Chavez and Giorgio Benvenuto.

This program, which runs from May 2020 to October 2022, involves individuals from Texas, California, Louisiana, Illinois and Florida who act as leaders of the CryptoFX network. They allegedly promised investors returns of 15 to 100% through crypto assets and forex trading. However, the SEC complaint alleges that the majority of the funds were not used for trading but were instead redirected to pay previous investors and personal enrichment, including commissions and commissions. reward the defendants.

The complaint also details that the two defendants, Gabriel and Dulce Ochoa, continued to solicit investments even after the court ordered a halt to the program, with Gabriel Ochoa instructing investors to withdraw the SEC complaint to recover their investments. Another defendant, Maria Saravia, allegedly misled investors by claiming that the SEC's lawsuit was fabricated.

The SEC's charges against Ochoas, Saravia and other defendants include violations of the anti-fraud, securities registration and broker registration provisions of the federal securities laws. Additionally, Gabriel Ochoa was charged with violating whistleblower protection provisions. The SEC is seeking permanent injunctions, disgorgement with pre-judgment interest and civil penalties against each defendant.

Two of the charged individuals, Luis Serrano and Julio Taffinder, without admitting or denying the charges, have agreed to final judgments discharging them from future violations of applicable securities laws. and agreed to pay a total of more than $68,000 in penalties, distribution and interest.

The SEC's investigation, led by the Fort Worth Regional Office, continues as it conducts litigation seeking justice for victims. This case serves as a reminder of the risks associated with unregistered investment services and the importance of verifying the legitimacy of investment opportunities.

The information in this article is based on a press release from the Securities and Exchange Commission.

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