HOUSTON — The U.S. Securities and Exchange Commission is investigating a Houston crypto company called CryptoFX, LLC for allegedly running a Ponzi scheme targeting the Latino community.
According to the feds, more than 5,000 people invested in the company and activists said those targeted were mostly Latino immigrants. The company allegedly threatened some of the investors based on their immigration status.
Outside a federal courthouse in Houston on Wednesday, dozens of people with signs were demanding help after they claim they were scammed by the company.
Pedro Cornejo said he is one of the victims. He said he gave leaders with the company $42,000 to invest in cryptocurrency before they ghosted him.
"These families were specifically targeted and were asked for money upfront to invest in cryptocurrency. Unfortunately, like we have seen all over the country, this quickly fell apart," said FIEL Executive Director Cesar Espinosa.
According to court records, the SEC is investigating the company's leaders, Mauricio Chavez and Giorgia Benvenuto, along with the company itself.
The two allegedly promised to hold classes to educate and empower the Latino community to build wealth through crypto trading.
One woman said they were told they would make a 15% profit per month off of their investment. She gave them $25,000.
But, according to the SEC, the leaders were actually running a Ponzi scheme.
"These families were taken advantage from and stolen of their hard-worked, hard-earned money," Espinosa said.
The SEC said the company used more than 90% of investor funds on luxury cars, credit cards, jewelry, adult entertainment and real estate.
Iliana Calles said she also fell victim to the company because her family had actually seen some returns at the beginning.
"It was my grandma, of course I am going to trust her. I've known that she was here for a year or two years. Of course, I would trust her. So I think, in total in our family, we gave over $100,000," Calles said.
Activists said this scheme wasn't just taking place in Houston. According to FIEL, the company was defrauding people all across the United States and even in Latin America.
Now, people are trying to figure out what to do next, without their life savings.
"I am trying to figure out how to pay for my mom's chemo, my mom's cancer screening. We had this mattress to fall back on, but my whole family gave to them," Calles said.
Victims said some were threatened with calls to immigration if they even thought about going to authorities