Stoltmann Law Offices is representing clients whose financial advisors have sold fraudulent cryptocurrency investments. In the past year, brokers have increasingly hawked investments that allegedly invest in digital cryptocurrencies. Some of these investments are fraudulent.
The U.S. Securities and Exchange Commission (SEC) recently filed an emergency action to stop an on-going fraudulent and unregistered crypto asset offering targeting Latino investors, run by defendants Mauricio Chavez and Giorgio Benvenuto through a company Chavez founded and controlled, CryptoFX, LLC. At the SEC’s request, a federal court issued a temporary restraining order halting the offering.
The SEC’s complaint alleges that, “in 2020, Chavez began holding paid classes for the ostensible purpose of educating and empowering the Latino community to build wealth through crypto asset trading. However, the complaint alleges Chavez had no background, education, or training in investments or crypto assets.”