El Paso man pleads guilty to operating a Ponzi scheme disguised as a crypto investment company | USAO-WDTX

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EL PASO, Texas An El Paso man pleaded guilty in federal court here last week to five counts of wire fraud.

According to court documents, 27-year-old Abner Tinoco operated a Ponzi scheme through his company by soliciting millions of dollars in investments from clients and claiming he would invest their money in funds dealing in trading markets. cryptocurrency and forex. Of approximately $9 million in investments deposited into his business accounts, Tinoco has spent more than half on personal expenses to include luxury cars, private jets, real estate and jewelry. Tinoco furthered the deception by providing some of the embezzled funds as profits to its customers.

Tinoco faces a maximum sentence of 20 years in prison plus restitution and a maximum fine of $250,000 on each count. A sentencing date has not yet been decided. A federal district court judge will determine any sentence after considering US sentencing guidelines and other statutory factors.

In a separate civil case arising from the above scheme, the Commodities Futures Trading Commission (CFTC) obtained a civil consent decree against Tinoco and its company, imposing a prohibition on trading activities. The Department of Justice will seek restitution for any additional victims of the Tinocos program.

U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffrey R. Downey of the FBI’s El Paso Field Office made the announcement.

The FBI is investigating the case.

Assistant U.S. Attorneys Shane Romero and Chris Skillern are prosecuting the case.

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