CFTC Sues Washington Pastor for $6M Cryptocurrency Ponzi Scheme

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As a seasoned researcher with years of experience unraveling financial deceit, it’s alarming to see yet another case of fraud in the crypto industry. The story of Francier Obando Pinillo is particularly disheartening due to his exploitation of trust within his community as a pastor. It seems that the allure of quick riches can blind even those who are supposed to guide us spiritually.

The Commodity Futures Trading Commission (CFTC) has brought charges against a pastor named Francier Obando Pinillo from Pasco, Washington, for allegedly operating a deceptive crypto investment scam that has garnered at least $5.9 million.

The complaint names Pinillo and his associated businesses, Solanofi, Solano Partners Ltd., and Solano Capital Investments, collectively known as the Solanofi entities, as the defendants.

Details of The Lawsuit

As stated in a declaration made by the CFTC on December 10th, Pinillo is accused of targeting approximately 1,515 individuals residing in the U.S., including members of his Spanish-speaking religious group. The accusation claims that he exploited his standing as a respected church leader to peddle his fraudulent plan.

He claimed to be the CEO of Solanofi, an automated trading platform that offered risk-free profits through high-performance trading of crypto assets. Pinillo falsely advertised guaranteed monthly returns of up to 34.9% and assured participants that the platform was secure and reliable.

The pastor provided individuals with online access to bogus account balances and earnings, intended to give the scheme an air of legitimacy. Furthermore, he motivated followers to enlist their friends and relatives by proposing a 15% referral reward for bringing in new participants.

On the other hand, according to the document, it’s indicated that no trading platform existed, no transactions took place, and no income was earned. It is claimed, however, that Pinillo instead illegally used all funds given by customers.

In addition to the original allegations, the lawsuit states that the defendant concealed vital details while trying to attract clients. This concealment included not revealing that the Solanofi businesses were fake, the supposed trading platform didn’t exist, and the online account statements were fabricated.

Moreover, he employed money from recent investors to compensate initial investors, which was labeled by the CFTC as a typical Ponzi structure.

Restitution and Similar Cases

After taking enforcement measures, the regulatory body aims to recover money for deceived parties, retrieve missused funds, impose financial penalties, ban future trading, and secure a lasting court order to halt any future breaches of the Commodity Exchange Act and associated regulations.

The accusation against Pinillo is just the latest example of fraudulent activities in the crypto world. In March, it was claimed by the U.S. Securities and Exchange Commission (SEC) that 17 individuals were behind a $300 million Ponzi scheme, which targeted over 40,000 Latino investors through a platform called CryptoFX.

In August, two Georgia brothers were charged by the financial regulatory body for allegedly deceiving more than 80 investors in a fraudulent multi-level scheme worth approximately $60 million.

In the same month, NovaTech Limited was accused of running a fraudulent scheme, which garnered over $650 million from approximately 200,000 investors, with a significant portion being Haitian-Americans among them.

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2024-12-15 01:04