CEO Of US Mining Company Is Sentenced To Imprisonment
Homero Joshua Garza, the executive director at GAW Miners, the crypto mining company from the US, accused of fraud, has been imprisoned for one year and nine months, according to the Hartford Business.
The federal court in Hartford ruled based on accusations against the head of the already nonexistent GAW Miners company that he created the Ponzi scheme and deceived numerous investors by selling a token called PayCoin (XPY).
Homero Joshua Garza (source: bitcoinisle.com)
The crypto mining company was established four years ago in the city of Bloomfield. It was producing, supplying, and selling crypto mining facilities. In 2015, the company was closed after accusations of using a Ponzi scheme, and the following year a lawsuit was filed against it.
Specialists of GAW Miners created PayCoin cryptocurrency in 2014. They promised investors an income of $20 from each XPY token, but its highest price, according to CoinMarketCap, was $15.92 on December 22 of the same year.
Initially, the scammer was facing a twenty-year sentence, but eventually, Garza will be in prison until 2021 and then spend six months under house arrest and three years under police surveillance. Besides, the former head of GAW Miners will have to return the depositors $9.2 million as a compensation for the financial damage inflicted. This amount Garza managed to attract fraudulently within nine months.
As previously reported, a fraudster who bought expensive cars for stolen bitcoins was arrested in the USA.