The Commodity Futures Trading Commission (CFTC) has taken a significant step by filing a civil enforcement action against Francier Obando Pinillo, a pastor based in Pasco, Washington. This action alleges that Pinillo was running a fraudulent cryptocurrency Ponzi scheme with a value of at least $5.9 million. The complaint specifically names Pinillo and his associated businesses, Solanofi, Solano Partners Ltd., and Solano Capital Investments, collectively known as the Solanofi entities, as the defendants.

Details of the Alleged Scheme

According to a December 10 release from the CFTC, Pinillo targeted a significant number of individuals in the United States, including members of his Spanish-speaking congregation. He misused his position as a trusted church pastor to promote a deceptive scheme. Pinillo claimed to be the CEO of Solanofi, an automated trading platform that promised risk-free profits through high-performance trading of crypto assets. He falsely advertised guaranteed monthly returns of up to 34.9% and assured participants of the platform's security and reliability.To make the scheme appear legitimate, Pinillo gave participants access to an online dashboard showing fake account balances and profits. He also encouraged customers to involve their friends and family by offering a 15% referral fee for recruiting new people. However, the document clearly states that there was no actual trading platform, no trades took place, and no profits were generated. Instead, Pinillo allegedly misappropriated all the funds provided by the customers.The lawsuit further claims that the accused failed to disclose crucial information when seeking clients. He did not inform them that the Solanofi entities were sham operations, the trading platform did not exist, and the online account statements were falsified. Additionally, he used the funds from new participants to pay earlier ones, which is a classic characteristic of a Ponzi scheme.

Regulator's Actions and Similar Cases

After filing the enforcement action, the regulator is seeking restitution for the defrauded participants. They aim to recover the misappropriated funds, impose civil monetary penalties, issue trading bans, and obtain a permanent injunction to prevent further violations of the Commodity Exchange Act and related rules.The case against Pinillo is not an isolated incident. In March, the U.S. Securities and Exchange Commission (SEC) alleged that 17 individuals were responsible for a $300 million Ponzi scheme that targeted more than 40,000 Latino investors through a program called CryptoFX. In August, the financial watchdog also brought complaints against two Georgia brothers accused of defrauding over 80 investors in a $60 million bogus multilevel plan. The same month, NovaTech Ltd. was charged with operating a fake operation that raised over $650 million from more than 200,000 investors, including many in the Haitian-American community.

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