SEC Fees Colorado Man, Paul A. Garcia with Fraud Associated to Cryptocurrency Enterprise
Securities and Trade Fee v. Paul A. Garcia, No. 1:22-cv-00118 (D. Colo. filed January 18, 2022)
Washington, DC (STL.News) The Securities and Exchange Commission at the moment charged Paul A. Garcia of Severance, Colorado, for allegedly defrauding traders by stealing roughly one-quarter of investor funds raised for Gold Hawgs Growth Corp. (“Gold Hawgs”), a failed cryptocurrency enterprise.
In accordance with the SEC’s grievance, filed in america District Courtroom for the District of Colorado, from August by way of October 2019, Gold Hawgs raised $400,000 from 16 traders for the creation of a brand new cryptocurrency. The SEC’s grievance additional alleges that Gold Hawgs touted giant potential returns for traders after the completion of its preliminary coin providing, however the enterprise failed earlier than reaching that stage. As a substitute of utilizing all the investor funds to develop Gold Hawgs’ enterprise, Garcia, the chief monetary officer and a 50% proprietor of the corporate, allegedly stole roughly $123,000 of the cash raised from traders by transferring the funds to a different firm that he managed; he then allegedly used the cash to pay for numerous private and enterprise bills unrelated to Gold Hawgs.
The SEC’s grievance costs Garcia with violating Sections 17(a)(1) and (a)(3) of the Securities Act of 1933, and Part 10(b) of the Securities Trade Act of 1934 and Guidelines 10b-5(a) and (c) thereunder, and seeks a everlasting injunction, disgorgement of all ill-gotten good points plus prejudgment curiosity, and a civil penalty. The SEC additionally names Workplace Guru Franchise Group, Inc., one other firm managed by Garcia, as a aid defendant.
The SEC’s investigation was performed by Jacqueline M. Moessner and supervised by Mary S. Brady and Jason J. Burt. The litigation will likely be led by Leslie J. Hughes and supervised by Gregory A. Kasper.