The SEC (U.S. Securities and Exchange Commission) obtain a judgement against Homero Joshua Garza, GAW Miners, LLC, and ZenMiner, LLC, No.
SEC Obtains Final Judgment Against Two Bitcoin Mining Companies
On June 2, 2017, the U.S. District Court for the District of Connecticut entered a final default judgment against the defendants for conducting a Ponzi scheme.
You know what this means ... it's official ... Ponzi-Garza is a word for the history books!
The losers, I mean defendants, boasted quick riches from virtual currency to defraud investors while simply paying existing investors with new investors money. In the SEC announcement they state that:
"The final judgment against GAW Miners and ZenMiner permanently enjoins each of them from violating Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and orders each of them to pay, jointly and severally, $10,384,099 in disgorgement and prejudgment interest."
They also have to pay a civil penalty of $1,000,000 each.
Hopefully some of these funds will find their ways back into investors pockets and these companies are now officially burned to the ground.
Next up? Garza himself. The SEC isn't done with his ass yet. They've got momentum behind them and a criminal case that may well land Garza in prison where he can enjoy a nice hiatus and think about what not to do in the future. Hopefully the SEC will ban him from the industry forever as well.
Written by dinbits
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