GAW Miners and ZenMiner’s founder Homero Joshua Garza is being sued by the SEC

Chris Lee

GAW Miners and ZenMiner’s founder Homero Joshua Garza is being sued by the Securities and Exchange Commission. The SEC filed a civil complaint alleging that the Bitcoin mining companies run by Garza and his brother, Carlos Garza, committed $19 million worth of fraud in a Ponzi scheme.

According to the Securities and Exchange Commission believes Garza sold more than 10,000 “investment contracts representing shares in the profits they claimed would be generated from using their purported computing power to ‘mine’ for virtual currency.” In its civil complaint, the SEC requests that the companies’ owners and associates return the money that was stolen to investors in addition to civil penalties justified by the “egregious nature of defendants’ violations.”

This is yet another example of alleged criminal behavior associated with companies selling Bitcoin mining hardware. In the past, similar cases were reported in Southern California where a company named Gemcoin was brought to the attention of the Securities and Exchange Commission. But this was not the only case and companies such as CoinTerra, or HashFast were also accused of conducting similar practices.

In a statement, the director of SEC’s Boston Regional Office, Paule G. Levenson said that, “As alleged in our complaint, Garza and his companies cloaked their scheme in technological sophistication and jargon, but the fraud was simple at its core: they sold what they did not own, misrepresented what they were selling, and robbed one investor to pay another.”

For months, the Bitcoin community has emitted some serious doubts as to the legitimacy of GAW Miners’ practices and many thought the company may be a scam. In view of the charges faced by the company and its owners, these doubts may have been founded.


Chris Lee

Latest news

Football Star jailed for Defrauding Friends and his Church
City of London police found former Premier League footballer Richard Rufus to be operating a £15m scam. Read more
Unauthorised and Scam Forex Brokers for March 2023
Unauthorised and scam brokers are more common than you might think, and they are often very convincing. Read more

Safest Forex Brokers 2023

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 73 % of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#5 Plus500 Logo79 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5

    Forex Fraud Certified Brokers

    Forex.com Logo
    skilling logo
    OctaFX Logo
    City Index Logo
    Exness Small Logo
    IQ Option Logo
    HYCM Logo
    IC Markets Logo
    AvaTrade logo
    BlackBull Markets Logo
    XM Logo
    ATFX Logo
    LegacyFX Small Logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.