Josh Garza, GAW Miners CEO to plead guilty to wire fraud

Josh Garza, GAW Miners CEO to plead guilty to wire fraud

Josh Garza, the chief executive officer of GAW Miners will be pleading guilty. GAW Miners is a defunct cryptocurrency mining company.

Josh Garza is expected to appear in court on the 20th of July, 2017.

It seems Josh Garza is in much trouble as he still has another criminal case on his neck. The US Securities and Exchange Commission is also charging for fraud. The SEC said in its statement that:

“Defendants used the lure of quick riches from a twenty-first century payment system known as virtual currency to defraud investors. Though cloaked in technological sophistication and jargon, defendants’ fraud was simple at its core – defendants sold what they did not own, and misrepresented the nature of what they were selling.”

“Defendants’ Hashlet sales had many of the hallmarks of a Ponzi scheme. Because defendants sold far more computing power than they owned and dedicated to virtual currency mining, they owed investors a daily return that was larger than any actual return they were making on their limited mining operations.”

Before its collapse, GAW Miners sold mining equipment and later began offering hosted services for hardware. The company subsequently moved to a cloud mining model, in which customers purchase hashing power and, effectively, a share of the mining operation’s projects.

The SEC in its final judgement against GAW Miners and Josh Garza said:

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. The final judgment also requires each entity to pay a civil penalty of $1,000,000. Both GAW Miners and ZenMiner have ceased their former business operations.

The SEC, however, said its litigation continues against Josh Garza.