Feds charge Severance man with running fraudulent crypto scheme – Loveland Reporter-Herald

SEVERANCE — Paul Garcia, a resident of Severance, was indicted this week by the U.S. Securities and Exchange Commission for allegedly stealing investors’ money after a failed cryptocurrency scheme.

Garcia is accused of raising $400,000 from 16 investors in mid-2019 for the creation of a new cryptocurrency called Gold Hawgs.

He reportedly touted the potential for high returns after Gold Hawgs made an initial coin offering, which never materialized.

“Instead of using all investor funds to grow Gold Hawgs’ business, Garcia, the company’s chief financial officer and 50% owner, allegedly stole approximately $123,000 of the money raised from investors by transferring the funds to another company he controlled; he then allegedly used the money to pay personal and business expenses unrelated to Gold Hawgs,” the SEC complaint said.

Office Guru Franchise Group Inc., another company controlled by Garcia, is named as a relief defendant in the lawsuit, filed this week in U.S. District Court in Denver.

The SEC is seeking a permanent injunction, restitution of all ill-gotten gains plus prejudgment interest and a civil penalty.

This article was first published by BizWest, an independent news agency, and is published under a license agreement. © 2022 BizWestMedia LLC.

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