Gaw Miners and Zenminer Josh Garza has claimed responsibility for $ 9,182,000
Gaw Miners and Zenminer Josh Garza has claimed responsibility for $ 9,182,000 after the US federal judge issued a final ruling on the US case against Homer. Garza pleaded guilty to "hashlet" fraud charges - allegedly "entitled to an investor a share of the benefits that Gaw Miners or ZenMiner allegedly would earn by extracting virtual currencies using the computers that were kept in their centers. data". Garza is also required to pay $ 742,774 in impairment charges.
The US Department of Justice stated in July that "between approximately May 2014 and January 2016, Garza, through Gaw, Gaw Miners, ZenMiner and ZenCloud, companies have founded and operated, defrauded money victims in companies acquired mines, access to miners, and the right to buy the virtual currency called "paycoin" as well as "hashlets".
The statement also states that Garza made "several false statements related to the plan, including that the parent company of Gaw Miners purchased a controlling stake in ZenMiner for $ 8 million and that ZenMiner became a division of Gaw Miners," in addition to claims "that companies sold GARZA that are engaged in virtual currency mining" - when in reality Garza "companies sold more hashlets that was supported by the computing power maintained in their data centers ... Garza also stated that the market value of a single paycoin would not fail below $ 20 per unit because GARZA companies had to reserve $ 100 million that the companies would use to buy the paycoins to raise their price.In fact, there was no such reserve ".
The court stated that the amount of $ 9,182,000 will be considered satisfied by the restitution order that will be registered against him when he is sentenced in the related criminal case.
The US Securities and Exchange Commission filed a lawsuit against Garza in December 2015, alleging that it was operating a Ponzi scheme by issuing hashlets through Gaw Miners. The company was accused of selling $ 20 million of hashlets despite not possessing the computing power that the hashlets represented.
The director of the SEC Regional Office in Boston, Paule G. Levenson, described the fraud in 2015, stating that "Garza and his companies concealed their scheme with technological sophistication and jargon, but the fraud was simple: they sold what they Garza initially was to be tried on three counts of securities fraud - each leading up to 25 years in prison, however, his lawyers were able to negotiate a single charge of telephone fraud - with a maximum sentence of 20 years.
Garza and his associates have long been the subject of scrutiny by the bitcoin community, due to the infamous altcoin Paycoin, in addition to the suspicious products offered by Gaw Miners and Zenminer. In the summer of 2016, Gaw Miners and investor Stuart Fraser were sued by Gaw's clients seeking damages for fraudulent practices. The suit argued that between 2014 and 2016, "the defendants sold a progressive series of products and investment contracts to more than 10,000 investors that the defendants would claim that they would benefit from mining or investments in virtual currency," explains the civil suit against the miners of Gaw.
Do you know anyone who lost money for Garza's fraudulent activities? Share your experience in the comments section below!
The US Department of Justice stated in July that "between approximately May 2014 and January 2016, Garza, through Gaw, Gaw Miners, ZenMiner and ZenCloud, companies have founded and operated, defrauded money victims in companies acquired mines, access to miners, and the right to buy the virtual currency called "paycoin" as well as "hashlets".
The statement also states that Garza made "several false statements related to the plan, including that the parent company of Gaw Miners purchased a controlling stake in ZenMiner for $ 8 million and that ZenMiner became a division of Gaw Miners," in addition to claims "that companies sold GARZA that are engaged in virtual currency mining" - when in reality Garza "companies sold more hashlets that was supported by the computing power maintained in their data centers ... Garza also stated that the market value of a single paycoin would not fail below $ 20 per unit because GARZA companies had to reserve $ 100 million that the companies would use to buy the paycoins to raise their price.In fact, there was no such reserve ".
The court stated that the amount of $ 9,182,000 will be considered satisfied by the restitution order that will be registered against him when he is sentenced in the related criminal case.
The US Securities and Exchange Commission filed a lawsuit against Garza in December 2015, alleging that it was operating a Ponzi scheme by issuing hashlets through Gaw Miners. The company was accused of selling $ 20 million of hashlets despite not possessing the computing power that the hashlets represented.
The director of the SEC Regional Office in Boston, Paule G. Levenson, described the fraud in 2015, stating that "Garza and his companies concealed their scheme with technological sophistication and jargon, but the fraud was simple: they sold what they Garza initially was to be tried on three counts of securities fraud - each leading up to 25 years in prison, however, his lawyers were able to negotiate a single charge of telephone fraud - with a maximum sentence of 20 years.
Garza and his associates have long been the subject of scrutiny by the bitcoin community, due to the infamous altcoin Paycoin, in addition to the suspicious products offered by Gaw Miners and Zenminer. In the summer of 2016, Gaw Miners and investor Stuart Fraser were sued by Gaw's clients seeking damages for fraudulent practices. The suit argued that between 2014 and 2016, "the defendants sold a progressive series of products and investment contracts to more than 10,000 investors that the defendants would claim that they would benefit from mining or investments in virtual currency," explains the civil suit against the miners of Gaw.
Do you know anyone who lost money for Garza's fraudulent activities? Share your experience in the comments section below!
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