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Garza Pleads Guilty To Wire Fraud In GAW, ZenMiner Ponzi Scheme

By

Matthew

De Silva

WriterETHNews.com

On July 20, former CEO of GAW Miners Homero Joshua Garza pleaded guilty to one count of wire fraud stemming from his mining Ponzi scheme. Garza, who faces up to 20 years imprisonment, will be sentenced in October 2017.

Yesterday, July 20, the Department of Justice (DOJ) announced that Homero Joshua Garza, of GAW Mining notoriety, waived his right to be indicted and pleaded guilty to one count of wire fraud in federal court. The DOJ alleged that from May 2014 to January 2016, Garza owned and operated GAW Miners, ZenMiner, and ZenCloud, companies that deceptively marketed and sold mining investments via “hashlets.” Hashlets supposedly entitled investors to a share in the companies’ profits.

Early last month, the US Securities and Exchange Commission (SEC) won a final judgment against GAW Miners and ZenMiner. As a result, each company was ordered to pay “disgorgement and prejudgment interest” for fraudulent business practices. In the course of its investigation, the SEC determined that Garza’s companies lacked much of the computing power that was sold. Instead, Garza paid investor returns using money that he received from subsequent victims.

Per the DOJ, “The loss attributable to GARZA from the scheme was $9,182,000.” He will be sentenced by US District Judge Robert Chatigny on October 12, 2017. Garza faces a potential prison term of 20 years, though his securities fraud case is still pending.

Matthew De Silva

Matthew is a writer with a passion for emerging technology. Prior to joining ETHNews, he interned for the U.S. Securities and Exchange Commission as well as the OECD. He graduated cum laude from Georgetown University where he studied international economics. In his spare time, Matthew loves playing basketball and listening to podcasts. He currently lives in Los Angeles. Matthew is a full-time staff writer for ETHNews.

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