GAW / Josh Garza discussion Paycoin XPY xpy.io ION ionomy. ALWAYS MAKE MONEY :)

[peonminer]

Those articles are based off of the SEC's investigation. Garza won't say a word because he knows he's royally f##ked, and about to be royally ass-f##ked in prison.

[owlcatz]

Those articles are based off of the SEC'a investigation. Garza won't say a word because he knows he's royally f##ked, and about to be royally ass-f##ked in prison.

Not to burst your ass-whatevery fantasy, but most financial criminals (read bernie madoff) end up in low-security places like this, so I don't think that's really going to happen. He didn't murder anyone, so he's not going to be going to the supermax in CO... LOL... 

https://www.bop.gov/locations/institutions/buf/

[peonminer]

Can we at least get some live coverage of trial, some forum posters in the crowd at the hearing, something?? 

[ThePhwner]

/r/bitcoin's reaction

https://www.reddit.com/r/Bitcoin/comments/3v0smb/sec_charges_bitcoin_mining_companies_gaw_miners/

There is a God. /r/atheism unsubscribed.

best comment so far

Agreed. That thread is comedy fucking gold.

Welp, it has been a long time coming but the process is finally underway and while this may well be a civil action, the collected evidence they possess will no doubt have been passed to other three-letter agencies.

Of particular interest to them will be the involvement of wealthy-investor-with-banking-difficulties-Rishabh-Jain. After all, Cantor Fitzgerald is a company in the business of providing investment services and advice to high-net-worth individuals and one would have to wonder how he ended up being introduced to the Garzas.

Turns out a bowtie, a rented Diablo, and an entourage of schills can't save you from the SEC. I think this will set the stage for many more SEC actions against the "cloud mining" scammers, at least those with ties to the US:

"Hashlets constitute investment contracts, and thus “securities” under Section 2(a)(1) [15 U.S.C. §77b(1)] of the Securities Act."

Anyone who was wondering if cloud mining contracts would be considered securities? The US definitively says yes.

I think you are mistaken. SEC didn't say cloud mining contracts are considered securities. If you read the other paragraphs, they state that they only had a fraction of mining with respect to what they sold. They also talk about paying with other funds, that's what makes it a security. Cloud mining itself isn't really described in there (unless I missed it)

Oh shut up. We all read the same document and the point is there's some actual precedent for the SEC to go after scammers in crypto. The above is a direct quote from the indictment. Whether you call it cloud mining or anything else, they are saying this shit isn't OK and it's not a leap to say that cloud mining shares constitute an investment contract when many of the cloud mining scams promise specific ROI terms and even use the word "contract." It's a legal milestone, like the IRS declaration of crypto as property, and the Breathitt Co., KY ruling against the borrower who defaulted on a BTCJam loan. That's the point.

[MOB]

Some interesting tidbits:

91. Hashlets constitute investment contracts, and thus “securities” under Section 2(a)(1) [15 U.S.C. §77b(1)] of the Securities Act.

92. No registration statement was filed with respect to the Hashlets sold by defendants, and no exemption from registration was available for these securities.

I wish I could remember who was the first person to bring the hashlets == unregistered securities allegation up in this thread. It only took a year but the US Gov finally agrees

Ahem.

[046738]

https://en.wikipedia.org/wiki/Cryptocurrency#Fraud

I am sure someone should be able to massage the entry about Garbonzo to include Uncle Stu's fame  into the mix with some citations and sources.

[MOB]

/r/bitcoin's reaction

https://www.reddit.com/r/Bitcoin/comments/3v0smb/sec_charges_bitcoin_mining_companies_gaw_miners/

There is a God. /r/atheism unsubscribed.

best comment so far

Agreed. That thread is comedy fucking gold.

Welp, it has been a long time coming but the process is finally underway and while this may well be a civil action, the collected evidence they possess will no doubt have been passed to other three-letter agencies.

Of particular interest to them will be the involvement of wealthy-investor-with-banking-difficulties-Rishabh-Jain. After all, Cantor Fitzgerald is a company in the business of providing investment services and advice to high-net-worth individuals and one would have to wonder how he ended up being introduced to the Garzas.

Turns out a bowtie, a rented Diablo, and an entourage of schills can't save you from the SEC. I think this will set the stage for many more SEC actions against the "cloud mining" scammers, at least those with ties to the US:

"Hashlets constitute investment contracts, and thus “securities” under Section 2(a)(1) [15 U.S.C. §77b(1)] of the Securities Act."

Anyone who was wondering if cloud mining contracts would be considered securities? The US definitively says yes.

I think you are mistaken. SEC didn't say cloud mining contracts are considered securities. If you read the other paragraphs, they state that they only had a fraction of mining with respect to what they sold. They also talk about paying with other funds, that's what makes it a security. Cloud mining itself isn't really described in there (unless I missed it)

Oh shut up. We all read the same document and the point is there's some actual precedent for the SEC to go after scammers in crypto. The above is a direct quote from the indictment. Whether you call it cloud mining or anything else, they are saying this shit isn't OK and it's not a leap to say that cloud mining shares constitute an investment contract when many of the cloud mining scams promise specific ROI terms and even use the word "contract." It's a legal milestone, like the IRS declaration of crypto as property, and the Breathitt Co., KY ruling against the borrower who defaulted on a BTCJam loan. That's the point.

Not sure why you are being so hostile Phwner, but the SEC finding does not indicate that cloud mining as a whole is an unregistered security. If you think otherwise, perhaps you could post the exact paragraph?

I agree that many cloud mining companies are likely also operating as illegal securities, but that does not mean all. It depends on how they are actually structured and sold.


Back on topic, I posted this long ago, but here are the sentencing guidelines for cases like this:

FIGURE 1: EXAMPLE RECOMMENDED SENTENCING PERTHE GUIDELINES (FOR THE DESCRIBED OFFENSE)
Section Level:
Base Offense Level (Fraud / Non-Fraud White Collar)18 §2B1.1(a) 7
» Loss (between $20 and $50 million) §2B1.1(b)(1) +22
» 250 or more victims §2B1.1(b)(2) +6
» Sophisticated means §2B1.1(b)(10)(C) +2
» Role in the offense §3B1.1 +2

Those are for levels, not months or years. The levels then correspond to a time in jail (this is like D&D hit-charts?), so for level 39 you have: 262 – 327 months (~21.8 – 27.25 years)

Josh is clearly at least level 39, between +7 levels for fraud & +22 for 20 million in loss. Even if that loss proves less, there were more than 250 victims, this is "sophisticated" (even if Josh is not), and he had a clearly prominent role.

Josh is at least level 39-49. That's a lot of time, before good behavior anyway. It is possible to get a life sentence for fraud, even with no past criminal convictions, not that I think Josh deserves to be in prison for life.

[truckinusa]

Can we at least get some live coverage of trial, some forum posters in the crowd at the hearing, something??  

I would love to show up, but I bet there will be tons of court dates where nothing happens.  Wish I lived closer.  I'm sure we can fund some gas money for live/recorded streams.  Does it say anywhere which federal court this will be done in?

[suchmoon]

Can we at least get some live coverage of trial, some forum posters in the crowd at the hearing, something??  

I would love to show up, but I bet there will be tons of court dates where nothing happens.  Wish I lived closer.  I'm sure we can fund some gas money for live/recorded streams.  Does it say anywhere which federal court this will be done in?

Careful with "streams". You can take notes or whatever but video/audio recording is a big no no. AFAIK, IANAL, etc etc.

[suchmoon]

Some interesting tidbits:

91. Hashlets constitute investment contracts, and thus “securities” under Section 2(a)(1) [15 U.S.C. §77b(1)] of the Securities Act.

92. No registration statement was filed with respect to the Hashlets sold by defendants, and no exemption from registration was available for these securities.

I wish I could remember who was the first person to bring the hashlets == unregistered securities allegation up in this thread. It only took a year but the US Gov finally agrees

Ahem.

Welcome back! I'll take your word for it

[favdesu]

Can we at least get some live coverage of trial, some forum posters in the crowd at the hearing, something?? 

I'd even send some money to fund this... would be super entertaining. a live tweet or something (do you allow periscope?)

[KC6TTR]

I wish I could remember who was the first person to bring the hashlets == unregistered securities allegation up in this thread. It only took a year but the US Gov finally agrees

Justice is a sweet thing.

Scott-

[HashieNewb]

I wish I could remember who was the first person to bring the hashlets == unregistered securities allegation up in this thread. It only took a year but the US Gov finally agrees

Justice is a sweet thing.

Scott-

took a while, but yeah .... sweet sweet justice!

 doesn't really help the paycon/xpee bag holders, but that ... that's a story for another day

[favdesu]

I wish I could remember who was the first person to bring the hashlets == unregistered securities allegation up in this thread. It only took a year but the US Gov finally agrees

Justice is a sweet thing.

Scott-

took a while, but yeah .... sweet sweet justice!

 doesn't really help the paycon/xpee bag holders, but that ... that's a story for another day

yeah, currently they're taking care of 2014 and the ponzi stuff. don't forget the 2015 $20 Floor promise, 9/11 scam and so on. that's the next problem for Mr. Garza

[o0o0]

Judge: Mr Garza can you kindly show us proof of your mining equipment and bitcoin mining profits.

Garza: You're a fudder judge we have plenty of happy customers. I don't have to prove anything to fudders, my clients know I'm legit

Judge: Carlos do you have anything further to add

Carlos: Your question merits no response... o and I'm scared.

[ladrx]

Judge: Mr Garza can you kindly show us proof of your mining equipment and bitcoin mining profits.

Garza: You're a fudder judge we have plenty of happy customers. I don't have to prove anything to fudders, my clients know I'm legit

Judge: Carlos do you have anything further to add

Carlos: Your question merits no response... o and I'm scared.

Judge: The penalty for your crimes carries a sentence of 30 years to life. Is there anything you would like to say, Homero?

Homero: What about the 20-year floor?

[peonminer]

Judge: Mr Garza can you kindly show us proof of your mining equipment and bitcoin mining profits.

Garza: You're a fudder judge we have plenty of happy customers. I don't have to prove anything to fudders, my clients know I'm legit

Judge: Carlos do you have anything further to add

Carlos: Your question merits no response... o and I'm scared.

Judge: The penalty for your crimes carries a sentence of 30 years to life. Is there anything you would like to say, Homero?

Homero: What about the 20-year floor?

The ownage is strong in this one.

[bitcoinnoisseur]

Josh's TOP 10 responses when taking his oath in court:

Do you Homero Joshua Garza swear to tell the truth, the whole truth and nothing but the truth so help you Gawd?

1 - About everything?

2 - I only respond to Hash King now.

3 - Wasn't there supposed to be a pre-announcement about this?

4 - But i don't know how to tell the truth.

5 - I have a learning disability you know.

6 - You're a troll.

7 - Can my lawyer answer that? He is from one of the most prestigious firms in the country.

8 - Where's that damn ban button?

9 - Can I respond by email?

10 - Can Bitjane edit my answer?

Thought I'd post this again for fun. PLEASE ADD MORE.

[favdesu]

Josh's TOP 10 responses when taking his oath in court:

Do you Homero Joshua Garza swear to tell the truth, the whole truth and nothing but the truth so help you Gawd?

1 - About everything?

2 - I only respond to Hash King now.

3 - Wasn't there supposed to be a pre-announcement about this?

4 - But i don't know how to tell the truth.

5 - I have a learning disability you know.

6 - You're a troll.

7 - Can my lawyer answer that? He is from one of the most prestigious firms in the country.

8 - Where's that damn ban button?

9 - Can I respond by email?

10 - Can Bitjane edit my answer?

Thought I'd post this again for fun. PLEASE ADD MORE.

11 - Do you cup balls?

LOL

[peonminer]

Josh's TOP 10 responses when taking his oath in court:

Do you Homero Joshua Garza swear to tell the truth, the whole truth and nothing but the truth so help you Gawd?

1 - About everything?

2 - I only respond to Hash King now.

3 - Wasn't there supposed to be a pre-announcement about this?

4 - But i don't know how to tell the truth.

5 - I have a learning disability you know.

6 - You're a troll.

7 - Can my lawyer answer that? He is from one of the most prestigious firms in the country.

8 - Where's that damn ban button?

9 - Can I respond by email?

10 - Can Bitjane edit my answer?

Thought I'd post this again for fun. PLEASE ADD MORE.

11 - Do you cup balls?

LOL

12. Yes, and I promise to give you all $20 per under oath question asked! Ask away!