Joshua Homero Garza, the homo behind the Ponzi schemes which were disguised every bit cloud mining operators, GAW Miners as well as ZenMiner, pleaded guilty to i count of wire fraud inward a Connecticut courtroom on July 20.
The annunciation was made yesteryear the the States Attorney for the District of Connecticut, Deirdre M. Daly, as well as Patricia M. Ferrick, Special Agent inward Charge of the New Haven Division of the Federal Bureau of Investigation (FBI).
The twosome stated that "Garza, 32, of Texas, formerly of Somers, Conn., waived his correct to travel indicted as well as pleaded guilty today inward Hartford federal courtroom to i count of wire fraud related to his travel inward his companies' purported generation as well as sale of virtual currency."
Garza has been nether investigation for a piece now, amongst fiscal regulatory agencies similar Securities as well as Exchange Commission (SEC) likewise every bit the FBI looking to convey him to jurist over allegations of theft of investor money likewise every bit fraud.
His 2 companies, GAW Miners as well as ZenMiner, were late ordered to pay a fine of $10 1000000 each. The Connecticut-based companies were instructed to component amongst the penalties afterwards they were constitute to travel conducting fraudulent business. In add-on to the $10 1000000 fine, each society would produce got to pay $1 1000000 every bit a civil penalty. The 2 companies purported to travel bitcoin mining operations but were actually Ponzi schemes that used novel investor money to pay off older investors.
"Between simply about May 2014 as well as Jan 2016, Garza, through GAW, GAW Miners, ZenMiner, as well as ZenCloud, companies he founded as well as operated, defrauded victims out of money inward connective amongst the procurement of virtual currency on their behalf. The companies sold miners, access to miners, as well as the correct to buy a virtual currency called paycoin, likewise every bit hashlets," explained the District Attorney's office.
The district attorney detailed his mistruths proverb "Garza made multiple faux statements related to the scheme, including stating that GAW Miners' bring upwardly society purchased a controlling stake inward ZenMiner for $8 1000000 as well as that ZenMiner became a sectionalization of GAW Miners."
With take in to fraudulent claims of mining ability, Daly stated, "GARZA's companies sold the customers the correct to to a greater extent than virtual currency than the companies' computing mightiness could generate."
After investigations yesteryear the FBI had constitute Garza to travel guilty of defrauding his investors over $9 million, he pleaded guilty to the charges leveled against him. Due to travel sentenced on Oct 12, 2017, yesteryear US District Judge Robert N. Chatigny, Garza faces a possible 20-year prison theater term.
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