The Securities and Exchange Commission (SEC) has charged 17 individuals for their roles in a $300 million Ponzi scheme involving Houston-based CryptoFX LLC. The scheme targeted over 40,000 predominantly Latino investors in the U.S. and two other countries.
The SEC alleges that CryptoFX purported to trade in crypto assets and foreign exchange markets but was a Ponzi scheme. The defendants allegedly promised investors returns of 15 to 100 percent but misused most funds to pay fake returns, commissions, and personal expenses.
The SEC’s complaint charges individuals from Texas, California, Louisiana, Illinois, and Florida with securities law violations. Gabriel and Dulce Ochoa, Maria Saravia, Gloria Castaneda, Ismael Zarco Sanchez, and Roberto Zavala face antifraud, securities registration, and broker-registration charges.
Gabriel Arguelles, Hector Aquino, Orlin Wilfredo Turcios Castro, Carmen De La Cruz, Elizabeth Escoto, Reyna Guiffaro, Marco Antonio Lemus, Juan Puac, Luis Serrano, Julio Taffinder, and Claudia Velazquez face securities-registration and broker-registration charges. Gabriel Ochoa faces leader protection violation charges.
The SEC seeks permanent order, discharge with interest, and civil penalties against each defendant. Serrano and Taffinder consented to final judgments, agreeing to pay over $68,000 in civil penalties, discharge, and interest. This action follows the SEC’s emergency halt of the CryptoFX scheme and charges against its two main principles in September 2022.
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