Life continues to suck for Josh Garza and anyone related to Josh Garza apparently.
The US Securities and Exchange Commission SEC filed a lawsuit against Carlos Garza, a sibling of the Ponzi's CEO, and like brother Josh, Carlos is being defiant, elusive, and all of those other kinds of things synonymous with just about everything Josh Garza touches.
According to the lawsuit, brother Carlos:
...refused to answer any questions .... failed to produce any documents requested in the subpoena ...
It must run in the family and comes as no surprise, but what is shocking is that the guy shows up to an SEC subpoena without an attorney. Seriously?
To top it off, uses that as an excuse for the zipping his mouth.
In August 17th Litigation Release (No. 23322) release, the SEC states that:
According to the application and supporting papers, the SEC is investigating whether GAW Miners, LLC, and various individuals and entities acting in association with it, have violated the anti-fraud or other provisions of the federal securities laws in connection with GAW Miners' sale of shares in the profits to be derived from its purported bitcoin mining operations and its sales of rights relating to a new type of virtual currency that it created.
Garza was a salesman for GAW Miners, and was knowledgeable about GAW Miners' potential misrepresentations to individuals who purchased shares in GAW Miners' alleged mining operations, and rights in its new virtual currency. The SEC also alleges that Garza has knowledge that may be relevant to locating the bitcoin and other virtual currency that GAW Miners received as payment.
Claiming they are on a fact-finding mission. Which basically means they want to twist the knife before they go in for the final kill, which, unless these idiots get an armada of brilliant attorney's almost immediately, may not be too far away.
Setting PainCoin (PayCoin) aside, I won't even go there, we all know GAW was a Ponzi, it was a Garza-Ponzi. The SEC "thinks" it might have been a Ponzi. Providing Ponzi-ish theory behind Ponzi thought, the SEC states:
...the Commission is investigating whether GAW Miners may have sold far more computing power than it owned and dedicated to virtual currency mining, and therefore, whether the company may have owed investors a return that was larger than any actual return it was making on its mining operations..
Investigating? Investigating what? Invite any 5th-grade math teach over for a beer, and they can likely crunch the numbers for you in an afternoon.
It was impossible!
We all did the math when it was actually happening. We all knew it then and guess what. Nothing has changed in that regard.