The Commodity Futures Trading Commission (CFTC) is attempting to recover nearly $6 million (£4.7m), plus penalties, from a former Washington state pastor accused of deceiving thousands of Hispanic individuals, including members of his own church, into participating in a fraudulent cryptocurrency scheme that authorities have labelled a Ponzi scheme.
A civil enforcement complaint was filed by the CFTC on Monday 9th December in the District Court for the Eastern District of Washington, according to The Christian Post.
The complaint claims that Francier Obando Pinillo, operating under the names Solanofi, Solano Partners Ltd and Solano Capital Investments, targeted at least 1,515 victims with his fraudulent investment scheme that ran from November 2021 to December 2023.
The CFTC stated that Pinillo preyed on unsuspecting individuals who had little experience in digital assets or commodity trading.
Allegedly, Pinillo used religious trust as a foundation for his scam, promising victims guaranteed returns of up to 34.9 per cent compounded monthly.
He also allegedly showed them presentations claiming a $1,000 (£790) investment could grow to nearly $1 million (£790k) in just 24 months.
The pastor also allegedly introduced a new “Christian-values” token called "ShekkelCoin" which he promoted through written solicitations.
Pinillo also allegedly charged victims $1,500 to access his Solanofi website, and another $1,500 (£1,185) for legal services he claimed were necessary to recover assets from a failed crypto exchange that he said held customers' investments.
According to the CFTC, Pinillo took advantage of his role as a pastor to reach many potential customers, particularly through church events, where he was seen as trustworthy.
At one church in Florida, he presented his scheme to congregants after speaking about lifting themselves out of poverty.
Pinillo falsely assured investors they could begin withdrawing from their accounts after three months, but failed to deliver on this promise.
The CFTC alleges that Pinillo misappropriated all funds he received from customers.
Payments he made to earlier investors, disguised as “profits” or “referral” bonuses, were allegedly funds taken from newer investors in the typical fashion of a Ponzi scheme.
The CFTC is seeking to provide restitution to the defrauded victims and impose penalties on Pinillo.
The lawsuit calls for the return of ill-gotten gains, civil monetary penalties, trading bans, and a permanent injunction to prevent future violations of the Commodity Exchange Act and CFTC regulations.