Pastor Charged In $6 Million Crypto Ponzi Scheme Targeting Church Members

A former pastor from Washington state has been charged in a $6 million cryptocurrency Ponzi scheme that allegedly defrauded over 1,500 individuals, many of whom were members of his own church. The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement complaint against Francier Obando Pinillo, accusing him of misleading investors with promises of high returns through a non-existent digital asset platform.

Key Takeaways

• Defendant: Francier Obando Pinillo, former pastor in Pasco, Washington.
• Scheme Duration: November 2021 to December 2023.
• Victims: Over 1,500, primarily Spanish-speaking church members.
• Alleged Losses: Approximately $6 million in cash and digital assets.
• Promised Returns: Up to 34.9% compounded monthly.

Allegations Against The Pastor

The CFTC's complaint outlines a series of deceptive practices employed by Pinillo to lure in unsuspecting investors. He allegedly:

1. Targeted Unsophisticated Investors: Many victims had little to no experience with digital assets, making them more vulnerable to his claims.
2. Used Religious Trust: As a pastor, he exploited his position to gain the trust of his congregation, presenting himself as a reliable source of financial advice.
3. Promised Unrealistic Returns: Pinillo claimed that investments could yield returns of nearly 35% per month, showcasing fabricated examples of how a $1,000 investment could grow to nearly $1 million in just two years.

The Mechanics Of The Scheme

Pinillo's operation involved several key components that contributed to its fraudulent nature:

• Fake Platform: He created a non-existent platform called Solanofi, which he claimed facilitated high-yield investments through a process known as staking.
• Misappropriation of Funds: Instead of investing the money, Pinillo allegedly pocketed the funds, sending approximately $4 million to private wallets believed to be in Colombia.
• False Promises: Investors were told they could withdraw their funds after three months, a promise that was never fulfilled.

Legal Actions And Consequences

The CFTC is seeking various forms of restitution and penalties against Pinillo, including:

• Restitution for Victims: Efforts to recover lost funds for defrauded investors.
• Disgorgement of Profits: Pinillo may be required to return any ill-gotten gains.
• Civil Monetary Penalties: Additional fines for his fraudulent activities.
• Trading Bans: A potential prohibition on future trading activities.

Broader Implications

This case highlights the risks associated with cryptocurrency investments, particularly for vulnerable populations. The intersection of faith and finance can create unique challenges, as individuals may place undue trust in figures of authority. The CFTC's actions serve as a reminder of the importance of due diligence and skepticism in investment opportunities, especially those promising unusually high returns.

As the legal proceedings unfold, the case will likely draw attention to the need for greater regulatory oversight in the rapidly evolving cryptocurrency market, particularly in protecting unsophisticated investors from fraudulent schemes.

Sources

• Pastor sued for promoting $6M crypto Ponzi scheme | U.S., Christian Post.
• Pastor Charged in $6 Million Crypto Fraud Scheme That Targeted Church Members - Decrypt, Decrypt.
• News Explorer — Pastor Allegedly Bilked Church Members in $6 Million Crypto Fraud Scheme - Decrypt, Decrypt.