A federal court in El Paso has sentenced local entrepreneur, Abner Tinoco, 27, to seven years in prison for wire fraud, following his engagement in a deceptive Ponzi scheme under the guise of a cryptocurrency investment venture. Through his operation, Tinoco successfully solicited close to $9 million from investors, promising to allocate their funds towards cryptocurrency and foreign exchange market ventures. However, over $4.5 million was expended on personal indulgences including luxury vehicles, private jet travels, real estate acquisitions, and jewelry. The deceit extended to showing a portion of the misappropriated funds as profits to the investors.
The criminal act drew sharp condemnation from U.S. Attorney Jaime Esparza for the Western District of Texas, who remarked on the predatory nature of the scheme, which exploited the trust of over a dozen victims. Special Agent in Charge John S. Morales for the FBI El Paso Field Office also highlighted the extensive financial damage caused to unsuspecting victims and reaffirmed the commitment of the FBI’s Complex Financial Crimes Task Force to bring justice to affected individuals.
In addition to the criminal proceedings, a separate civil case spearheaded by the Commodities Futures Trading Commission (CFTC) resulted in a civil consent decree against Tinoco and his business, imposing a trading ban. Looking ahead, a restitution hearing is scheduled for 2024 to further address the financial restitution for the victims of this fraudulent scheme. The Department of Justice will be working towards securing additional restitution for the affected individuals, emphasizing the importance of accountability and justice in such fraudulent financial operations.
The case serves as a stark reminder of the potential risks and malicious intents that can lurk behind the guise of cryptocurrency investments, urging investors to exercise due diligence and caution in their financial endeavors.
