The Securities and Exchange Commission (SEC) is seeking 10 million from the imploded Ponzi-Garza in connection with its securities fraud suit.
This coming after it filed a lawsuit late last year and question Josh Garza's brother in an attempt to gain more knowledge of the facts.
Paging Ponzi-Garza.... ???
Josh Garza has been amazingly silent through this entire ordeal. A man who was impossible to shut up at one point and well known for ridiculously long and drawn out explanations and banter through out the community, hasn't said a word throughout this entire crash-and-burn.
He hasn't shown up to court either, in 2015 when Mississippi Power Company (MPC) sued Garza and GAW for $350,000 owed for services, he (they) allowed the case to fall into a default judgement.
Looks like the SEC took note and is trying the same.
A default judgement is kind of like the legal world equivalent of rape. When a defendant doesn't bother to show up to court proceedings and present a defense, they are essentially bent over backward and receive a ruling generally in favor of the plaintiff. Typically these judgement's are so lopsided that even a first year public defender could have gotten a better settlement.
What's worse is that once on record, it clears the pathway for further lawsuits that have the ability to use the ruling as evidence of wrong doing in other cases.
Garza might want to get his ass into court before they start unloading criminal charges against him. With this stacking up the way it is, its very possible that is right around the corner.
All rather strange considering Garza does have an attorney. Maybe his bill hasn't been paid either?
Blood From a Stone
This might also open some doors for others to file suit, however, the term you can't draw blood from a stone comes to mind. If Garza had any money, the company wouldn't have gone down in the manner it did, unless he embezzled funds in some manner. If you recall GAW went on a selling spree of its mining inventory and depleted it rather quickly at ridiculously low prices. May that was part of this entire thing and it was all really just an elaborate exit scam.
It's possible, but good luck trying to run. One thing is certain, not paying your light bill is one thing. Tangling with the SEC is another. The shame is understandable, who would want to show their face in public again after becoming the joke of the industry? The humiliation has got to be eating at whatever tidbit of ego left if that pea brain of his.
You would think not going to jail or having a federal agency after every penny you have would be a bit more important than his ego on this one. Apparently not the case.
I'm sure this is going to get ugly. Uglier than it already is, that is.
Story by dinbits
image by dinbits staff