SEC Charges 17 Individuals in $300 Million Crypto Ponzi Scheme Targeting Latinos
SEC’s Legal Action Against CryptoFX Ponzi Scheme
The Securities and Exchange Commission (SEC) has charged 17 individuals linked to CryptoFX LLC, a Texas-based company, for running a Ponzi scheme that defrauded over 40,000 investors, mainly within the Latino community. The SEC intervened in September 2022, disrupting the operation and charging Mauricio Chavez and Giorgio Benvenuto, the main operators of the scheme.
Details of the Ponzi Scheme
Operating from May 2020 to October 2022, the scheme entailed leaders from Texas, California, Louisiana, Illinois, and Florida promising investors high returns through crypto asset and foreign exchange trading. However, the SEC’s complaint reveals that funds were diverted to pay earlier investors and for personal enrichment, contrary to trading activities.
Continuation of Fraudulent Activities
Despite court orders to cease operations, Gabriel and Dulce Ochoa continued to solicit investments, with Gabriel instructing investors to withdraw SEC complaints. Maria Saravia misled investors by claiming the SEC lawsuit was fabricated, showcasing the defendants’ disregard for legal consequences.
Legal Charges and Consequences
The SEC charged the defendants with various violations, including antifraud, securities registration, and broker registration provisions. Seeking permanent injunctions, disgorgement, and civil penalties, the SEC aims to hold the perpetrators accountable for their actions.
Cooperation and Justice for Victims
Luis Serrano and Julio Taffinder, among the accused, consented to final judgments, acknowledging their violations and agreeing to pay penalties. The SEC’s investigation, led by the Fort Worth Regional Office, continues to seek justice for the victims affected by the Ponzi scheme.
Importance of Verifying Investment Opportunities
This case underscores the risks associated with unregistered investment offerings and highlights the significance of verifying the legitimacy of investment opportunities before committing funds. Investors are urged to exercise caution and conduct due diligence to avoid falling victim to fraudulent schemes.
Disclaimer
The information presented is sourced from a press release statement by the Securities and Exchange Commission. This rewritten article aims to provide a comprehensive overview of the SEC’s legal actions against the CryptoFX Ponzi scheme and the ongoing efforts to address fraudulent activities within the crypto space.
