Josh Garza, the man behind the Ponzi-Garza implosion, GAW Miners and Paincoin (oops, I mean PayCoin), has one less legal worry. Garza is under investigation by the Securities and Exchange Commission (SEC) for fraud, however, a group of investors who had named him in a civil suit has now dropped him from a complaint according to documents filed in the U.S. District Court for the District of Vermont.
Stuart A. Fraser, a former vice chairman at Cantor Fitzgerald, is the remaining a defendant.
"Through Fraser's ownership of GAW Miners and ZenMiner and his longstanding personal and business relationship with Garza, Fraser had the power to direct or cause the direction of the management and policies of GAW Miners and Garza" - attorneys for the plaintiffs.
In the new filing the attorneys for the plaintiffs note that they have engaged in "discussions with Homero Joshua Garza." without further detail. Sounds like someone is about to squeal.
According to the original suit, filed on June 15, 2016, Garza and Fraser defrauded up to 10,000 customers by selling mining gear and operating a Ponzi scheme, hence the Ponzi-Garza tag we commonly use on dinbits.com and as we all know the SEC is pressing a 10 million dollar judgement against Garza to which his attorneys recently filed a motion requesting a 60-day extension of the proceedings.
Garza and Fraser have had a working business relationship for well over a decade and apparently a much closer relationship than that overall.
"Garza expressed his gratitude at one point by giving Fraser a Tesla ... . Fraser and Garza regularly went to one another's homes, spent time with one another's families and friends, and engaged in social activities together. Garza and Fraser also regularly sent each other text messages, often about social subjects and often including pictures of themselves. Fraser's wife made him a book that listed the four people Fraser was closest to for Fraser's 50th birthday. The book listed Garza as one of those individuals. In another instance, Garza told Fraser he was having a child. Fraser expressed anger and concern over Garza's decision and questioned whether Garza would continue to devote adequate time to their business ventures." - Attorneys for the Plaintiff.
Fraser is obviously another individual responsible somewhat for the GAW miners disaster that left thousands of customers defrauded, but the SEC hasn't named him in any suit. Yet.
In any case, Homero Joshua Garza is no longer a defendant in this civil matter, but he's still in plenty of hot water with the SEC so he still sucks.
I wonder what happens to this 10 million if the SEC pulls it off? Any customer relief coming from those defrauded? Another story for another day I suppose.