SEC Charges GAW Miners in 20 Million Dollar Ponzi Scheme | dinbits



Prepare yourself for a jolt. The reliable trustworthy rock solid entity that was GAW Miners and its fearless leader, Josh Garza, have been charged for operating a $20 million dollar Ponzi scheme. (Ponzi-Garza)

SHOCKER THERE!

In this SEC Complaint (PDF) the Securities and Exchange Commission claims Garza and company did not own the computing power necessary to mine with their "Hashlet" cloud miners.

The claim states:

Though cloaked in technological sophistication and jargon, defendants’ fraud was simple at its core – defendants sold what they did not own, and misrepresented the nature of what they were selling.

The complaint goes on to state Garza paid himself and investors while leaving his customers sitting there in the ZenMiner cloud wondering why they weren't making all of this money promised to them.

It lists violations of Securities Exchange Act of 1934 and Securities Act of 1933 (we caught NextBank red handed in this same manner we called out their scam, they are/were involved in these same types of violations among others in the US and similar ones in the UK) and explains each, in depth, in the 23 page document.

The Actual Shock

Perhaps the biggest surprise out of any of this is that Josh Garza isn't Josh Garza. His real name is Homero Garza (middle name Joshua). I guess I missed this in the past. The second interesting thing is that his brother, nor anyone else at GAW, was named in the claim. The only defendants are Homero (Josh Garza), Gaw Miners, LLC, and ZenMiners, LLC.

This lends to the suspicion of his brother (and others) possibly cooperating with authorities during the investigation. This would be of no surprise either.

Where The Cabbage?

It really makes you wonder what in the world Josh Garza actually did do with all of that money. He certainly didn't pay his bills. Earlier this year he lost a court battle by default (didn't show up) with the State of Kentucky.

This all comes as no surprise, many warned about this including us here at dinbits.com where we have cautioned against GAW since its inception of the Hashlet. The math never added up.

Like Mark Karpeles in Japan in 2015, the Ponzi-Garza will undoubtedly unfold in court in 2016 ending in the ultimate plea bargain or conviction of Josh Garza (and others).

The question is. If he didn't payout any mining earnings, and he didn't pay his bills then where's the money? Will there be a class action suit to follow? Will anyone get their money back?

Things to ponder.






Story by dinbits
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