Multilevel Marketing Scam Allegations Against Francier Obando Pinillo
The United States Commodity Futures Trading Commission (CFTC) has filed a complaint against Francier Obando Pinillo, a pastor from Washington state, for allegedly promoting a $6 million cryptocurrency Ponzi scheme to over 1,500 people. The CFTC accuses Pinillo of engaging in a multilevel marketing scam that targeted vulnerable individuals, including some who attended his church.
Background on the Allegations
According to the CFTC’s complaint filed on December 9, 2023, Pinillo claimed to be the CEO of Solanofi, Solano Partners Ltd., and Solano Capital Investments. He touted a "Solano ecosystem" that promised high-performance crypto trading, with monthly profits of up to 34.9% for clients. The scheme involved trading Bitcoin (BTC), Ether (ETH), Tether (USDT), and other cryptocurrencies on behalf of customers.
How the Scheme Worked
The CFTC alleges that Pinillo used social media platforms to promote his scheme, which included a staking service called Solanofi 2.0. This service supposedly guaranteed profits for users who participated in the staking process. To entice new investors, Pinillo offered a 15% referral fee.
A key component of the scheme was an online dashboard that displayed fake account statements, giving customers a false sense of security and encouraging them to invest more. The CFTC claims that no actual trading or staking services existed as promised.
Deception and Misrepresentation
The CFTC highlights several instances of deception and misrepresentation employed by Pinillo:
- False promises: Pinillo claimed to offer high-performance crypto trading with guaranteed profits, when in reality, there was no automated computer trading program.
- Fake account statements: The online dashboard displayed false account statements to make customers believe their investments were performing well.
- Misappropriation of funds: Pinillo allegedly misappropriated all digital and fiat assets transferred by customers.
Targeting Vulnerable Individuals
The CFTC notes that the scheme targeted "unsophisticated customers" with little to no experience in digital asset transactions, commodity interest trading, or staking digital assets. The regulator emphasizes that Pinillo’s solicitations were primarily in Spanish, allowing him to exploit his position of trust as a pastor.
Consequences and Next Steps
The CFTC seeks:
- Restitution: To compensate defrauded customers for their losses.
- Forfeiture: To seize all funds generated through the scheme.
- Trading ban: To prohibit Pinillo from engaging in any trading activities.
- Permanent injunction: To prevent further harm to potential victims.
Information on Pinillo’s lawyers is not immediately available, and he has not responded to a request for comment via social media.
Conclusion
The CFTC’s complaint against Francier Obando Pinillo serves as a stark reminder of the risks associated with cryptocurrency Ponzi schemes. As the crypto landscape continues to evolve, it is essential for regulators, investors, and consumers alike to remain vigilant and informed about potential scams.
Resources:
- CFTC: The official website of the Commodity Futures Trading Commission.
- Cryptocurrency Laws and Regulations: A comprehensive resource for understanding cryptocurrency laws and regulations worldwide.
Recommendations:
- Conduct thorough research: Before investing in any cryptocurrency or trading platform, thoroughly research the project’s team, technology, and market potential.
- Be cautious of promises: Be wary of schemes that promise unusually high returns with little risk. If a project seems too good to be true, it likely is.
- Verify credentials: Ensure that the individuals promoting the scheme have legitimate credentials and experience in the field.
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