SEC Asks for $12 Million from GAW miners

The Securities and Exchange Commission (SEC) is asking a Connecticut federal court order Josh Garza and his mining companies. GAW Miners, and ZenmMiners, to pay more than $12 million in reimbursement and civil penalties.

The proposed order for entry of default judgment filed in the U.S. District Court for the District of Vermont, GAW Miners and ZenMiner "failed to plead or otherwise defend in this action ..." and there is "a reasonable and satisfactory factual basis for default judgment and that a further hearing is not warranted."

The order will restrict the two companies. listed as GAW MINERS, LLC and ZENMINER, LLC (d/b/a ZEN CLOUD), activities however does not affect what Garza does personally, which is the actual problem to begin with. Garza is still negotiating with SEC on resolving the claims against him.

The SEC, in its proposed order, is asking for $10,078,331 plus interest from profits made in their illegal Ponzi-Garza scheme and an additional $2 million in civil penalties.

GAW Miners and ZenMiner will be "permanently restrained and enjoined from violating, directly or indirectly ..." Securities Exchange Act regulations, and to not "engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person."

This is a proposed judgement in the SEC case filed against Garza in late 2015.

According to court documents filed by the SEC, by Garza and GAW:

"...sold far more Hashlets worth of computing power than they possessed. Garza and his companies also made numerous false and misleading statements about their virtual currency mining operations to potential and actual investors," 

The proposed final judgement was filed on May 29th.

Although $12 million sounds like an incredible amount of money for a broke company to shell our, be cognizant of the fact that GAW miners raked in over 19 million of folks money for a non-existent Hashlet. The original complaint states specifically:

1. Defendants earned about $19 million in revenue from their sales of Hashlets.

Note this is separate from the criminal case against Garza, in which Garza plead guilty to last month, this is a civil case against Garza and the two entities.

Thus far Garza has used the Fifth Amendment refusing to answer anything, no explanations, no countering testimony, no answers, not a word out of the man ... which is hilarious coming from a guy that would never shut-up .

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Article by dinbits

Edited by: Alba Gei

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Banner Image by dinbits.com staff

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