CFTC Accuses Pastor of Exploiting Church Members in $6M Crypto Fraud

2024-12-10 22:01:33

CFTC Ponzi Scheme

The former pastor allegedly claimed his “risk-free” platform could generate up to 34.9% monthly profits using a proprietary trading bot. Last updated:

December 11, 2024 01:01 EST

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

December 11, 2024 01:01 EST

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A former pastor of a Spanish-speaking church in Washington state orchestrated a multiyear crypto fraud, raising over $5.9m from more than 1,500 investors, including many of his own congregants, according to a lawsuit the Commodity Futures Trading Commission filed Tuesday.

Between Nov. 2021 and Dec. 2023, Francier Obando Pinillo allegedly operated a Ponzi scheme, falsely claiming to manage a leveraged staking investment in digital assets.

Pinillo used his pulpit, social media and businesses to carry out the alleged fraud. He is said to have collected assets from investors, promising to trade them on the now-defunct FTX, according to the complaint.

.@CFTC Charges Washington State Pastor with Fraud, Misappropriation in Multilevel Marketing Scheme Targeting Hispanic Americans:

— CFTC (@CFTC) December 10, 2024

Pastor Allegedly Promised 34.9% Monthly Returns in “Risk-Free” Crypto Scheme

Pinillo, who ran a business under the name Solanofi Entities, allegedly directed customers to transfer digital and fiat assets into wallets and accounts he controlled. He promised up to 34.9% monthly profits, claiming to trade digital assets on the “Solanofi” platform using a proprietary bot he managed which he described as “risk-free.”

Moreover, Pinillo allegedly provided customers with an online dashboard to view account statements reflecting their claimed balances. This dashboard allowed them to track their supposed “profits.”

The former pastor added a multi-level marketing element to attract more participants. He promised a 15% “referral fee” to customers who recruited friends and family into his scheme.

Pastor Allegedly Used Ponzi Scheme to Pay Fake Profits and Referral Fees

According to the CFTC, his claims and account statements were fake.

During the period in question, no trading platform existed, no trades took place, and no profits were earned. Francier Obando Pinillo allegedly misused all assets entrusted to him.

He paid earlier investors fake “profits” and “referral” fees using funds from later investors, operating a classic Ponzi scheme.

The CFTC, under consideration as the frontline crypto regulator by President-elect Donald Trump, seeks civil monetary penalties and various remedies against the defendant. These include trading and registration bans, restitution, disgorgement, rescission, and pre- and post-judgment interest.

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