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Fake-Cryptocurrency Ponzi Scheme Lands Creator in Prison

posted by Fnord666 on Sunday September 16 2018, @03:13PM   Printer-friendly
from the different-kind-of-bars dept.

MrPlow writes:

Submitted via IRC for SoyCow1984

A man who, according to federal authorities, ran a fake cryptocurrency Ponzi scheme and pleaded guilty last year to one count of wire fraud is now headed to prison.

On Thursday, Homero Joshua Garza, also known as Josh Garza, has now been sentenced by a federal judge in Hartford, Connecticut, to 21 months in prison, three years of supervised release, and more than $9 million in restitution. The news was first reported Thursday by CoinDesk.

In their sentencing memorandum filed before the hearing, prosecutors were blunt in their assessment of Garza, saying that he "lied to investors and customers and took their money" to the tune of $9 million in losses spread across thousands of people worldwide.

Source: https://arstechnica.com/tech-policy/2018/09/man-who-swindled-9m-in-wannabe-bitcoin-ponzi-scheme-headed-to-prison/

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  • (Score: 3, Insightful) by zocalo on Sunday September 16 2018, @05:32PM

    by zocalo (302) on Sunday September 16 2018, @05:32PM (#735701)
    IANAL, but the key things here appears to be that's a civil case and the interview was with a material witness (the brother) rather than the actual accused. It's a subtle distinction, especially given the SEC's connection to the goverment, but the combination does seemingly get the government off the hook for providing counsel for a witness that cannot afford one, although perhaps not the the actual accused.

    I don't doubt that the SEC lawyers are correct in their assertion, nor am I defending the Garza's, but have to agree that this seems like a particularly nasty legal gotcha for someone to be in. Maybe if you have no real association with the accused that wouldn't be a problem - no different from being called to give evidence in any other trial - but given that were are talking about an immediate family member and given the level of jailtime and financial restitution that can clearly result, it does seem particularly harsh.
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