Washington Pastor Charged With $6 Million Crypto Fraud

By Mark Hunter

1 day agoThu Dec 12 2024 08:32:26

Reading Time: 2 minutes

• The Commodity Futures Trading Commission (CFTC) has charged a Washington State pastor with orchestrating a $5.9 million fraudulent digital assets scheme
• The pastor allegedly exploited his position to target over 1,500 individuals, primarily Spanish-speaking congregants, promising high returns through a fictitious trading platform
• The CFTC seeks restitution for defrauded customers, disgorgement of ill-gotten gains, and civil monetary penalties

The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Francier Obando Pinillo, a pastor from Pasco, Washington, accusing him of operating a fraudulent $5.9 million crypto scheme. Pinillo allegedly leveraged his pastoral role to solicit investments from over 1,500 individuals, predominantly Spanish-speaking members of his congregation, by promoting a non-existent leveraged staking trading platform that promised substantial, risk-free returns. Pinillo offered astonishingly high rates of return which lured in unsuspecting members of the community.

Exploitation of Trust

According to the CFTC’s complaint , Pinillo, operating under the business names Solanofi, Solano Partners Ltd., and Solano Capital Investments, claimed to offer an automated trading system capable of generating up to 34.9% compounded monthly profits. He purportedly provided investors with online dashboards displaying fabricated account balances and profits to create an illusion of legitimacy.

Pinillo “abused his position of trust as the church pastor to attract customers,” employing multilevel marketing strategies, such as a 15% referral fee to investors who brought in additional participants. This tactic expanded the reach of the fraudulent operation, ensnaring more victims within the community. The CFTC alleges that no actual trading occurred and that Pinillo misappropriated all customer funds.

Legal Actions and Implications

The CFTC is pursuing restitution for defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, trading bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations. This case underscores the vulnerabilities within tight-knit communities to affinity fraud, where trust is exploited for financial gain.

The CFTC’s action highlights the importance of due diligence and skepticism toward investment opportunities promising unusually high returns, especially those promoted by trusted community figures. This is easier said than done, but such returns, especially when promised, are impossible for anyone to maintain.