WASHINGTON DC – The Securities and Exchange Commission (SEC) has charged 17 individuals related to CryptoFX LLC, a Texas-based company, for orchestrating a Ponzi scheme that amassed $300 million by defrauding more than 40,000 investors, primarily within the Latino community. . The SEC's legal action, announced today, follows an emergency intervention in September 2022 that initially disrupted the fraudulent operation and charged the firm's top traders, Mauricio Chávez and Giorgio Benvenuto.
The scheme, which ran between May 2020 and October 2022, involved individuals from Texas, California, Louisiana, Illinois and Florida, who acted as leaders of the CryptoFX network. They allegedly promised investors returns of 15 to 100 percent through trading crypto assets and currencies. However, the SEC's complaint alleges that the majority of the funds were not used for trading operations, but were instead diverted to pay previous investors and for personal enrichment, including commissions and bonuses for the defendants.
The lawsuit also details that two defendants, Gabriel and Dulce Ochoa, continued to solicit investments even after court orders stopping the scheme, and Gabriel Ochoa ordered the investors to withdraw their complaints to the SEC to recover their investments. Another defendant, Maria Saravia, is alleged to have misled investors by claiming that the SEC lawsuit was a fabrication.
The SEC's charges against the Ochoas, Saravias and other defendants include violations of the anti-fraud, securities registration and broker-dealer registration provisions of the federal securities laws. Additionally, Gabriel Ochoa is accused of violating whistleblower protection provisions. The SEC seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties against each defendant.
Two of the accused individuals, Luis Serrano and Julio Taffinder, without admitting or denying the allegations, have consented to final judgments prohibiting them from future violations of the relevant securities laws and have agreed to pay a combined total of more than $68,000 in fines, disgorgement and interest.
The SEC's investigation, led by the Fort Worth Regional Office, continues as they pursue litigation seeking justice for victims. This case serves as a reminder of the risks associated with unregistered investment offerings 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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