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SEC wants 10 million dollars from GAW Miners

By Sharon Rowe
In Cryptocoins
Feb 12th, 2016
0 Comments
1248 Views

The SEC, better known as the Securities and Exchange Commission, wants ten million dollars from GAW Miners and ZenMiner related to its fraud suit against the mining firms. There is finally being shed more light on the case and Garza’s involvement. GAW Miners and ZenMiners have been causing ruckus lead by Josh Garza for quite some time now. And it’s all coming to an end, or is it?

The SEC has filed a lawsuit against the two mining firms and its former CEO Josh Garza last December. The SEC has finally sought a motion for entry of default last month. Garza and both companies are being accused of fraudulent activities and defrauding investors through an elaborate Ponzi scheme based on a mining service. They were selling more mining power than the company actually owns.

The SEC states that the mining contracts sold by GAW Miners in 2014 through their internal market falls under the SEC’s reign as they were selling securities.

“The SEC has requested that the court enters a final judgement against GAW Miners and ZenMiner and that judgment permanently enjoin those two companies from future securities law violations and order them to pay disgorgement and prejudgment interest of ten million dollars and an appropriate third-tier civil penalty.

SEC has also alleged that GAW Miners and ZenMiners have been giving misrepresenting material and information to customers which meant another 19 million dollars in sales of mining contracts. The SEC says that these sales were a direct result of statements made publicly by Garza.

SEC hasn’t made Garza a specific part of the filing and hasn’t named him as one of the parties. This came to light through a court approval for an extension of time to response to the suit. Garza’s defense attorney Marjorie Peerce, hasn’t responded yet to the request.

And the collapse continues

GAW Miners had collapsed in the spring of 2015 while Paycoin was on its way down and all the calamity that came with it. The firm was also sued by a Mississippi electrical utility at that time, which resulted in a default judgement after GAW Miners and Garza hadn’t responded.

Details of SEC’s investigation of GAW Miners was first mentioned by Coin Fire, that almost always has the first gossip and facts before anyone else. Kudo’s. GAW Miners has always denied the existence of any lawsuit. But the information and the truth always comes out, as we’re witnessing here.

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