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

ForexFraud

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.


ForexFraud

Latest news

AUD/USD in the 0.7350 Region, Jobs Data in the Spotlight
Quick Summary: Australian employment figures more buoyant than forecast AUD/USD hovering around 0. Read more
EUR/USD close to 1.1737 – what’s next for the euro?
The euro is floundering in the forex markets at the moment – and this trend was emphasised on Wednesday and into Thursday after the Federal Reserve meeting. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
5
#2 Your capital is at risk Founded: 2012 Global Forex Broker
Number One Broker
Best Trading App Visit broker
5
#3 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8

    Forex Fraud Certified Brokers

    BlackBull Markets Small Logo
    Oanda Small Logo
    Oinvest Small Logo
    City Index Logo
    Forex.com Logo
    FXTM Logo
    Plus500 Small Logo
    IQ Option Logo
    XM Logo
    VantageFX Small Logo
    skilling logo
    ATFX Logo
    Pepperstone
    OctaFX Logo
    Exness Small Logo
    HYCM Logo
    LegacyFX Small Logo