U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23960 / October 4, 2017
Securities and Exchange Commission v. Homero Joshua Garza, No. 15-cv-1760 (D. Conn. filed Dec. 1, 2015)
SEC Obtains Final Judgment Against Founder of Bitcoin Mining Companies Used to Defraud Investors
The Securities and Exchange Commission has obtained a final judgment against former Connecticut resident Homero Joshua Garza charged withconducting a fraudulent offering of unregistered securities and operating a Ponzi scheme.
The final judgment, entered on October 4, 2017 by the Honorable Jeffrey A. Meyer of the U.S. District Court for the District of Connecticut, permanently enjoins Garza from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, orders him liable for disgorgement of $9,182,000, the payment of which is deemed satisfied by the order of restitution that has been agreed upon in the parallel criminal case against him, and prejudgment interest in the amount of $742,774.
The court’s entry of judgment against Garza resolves this litigation in its entirety. The SEC previously obtained an $11 million final judgment against GAW Miners and ZenMiner.
Garza was charged in a parallel criminal case and pled guilty on July 20, 2017 to one count of wire fraud. His sentencing is scheduled for January 5, 2018.
https://www.sec.gov/litigation/litreleases/2017/lr23960.htm