My Dealer Coin, Now Mining and the scammers behind it have been fined for securities fraud by Arizona’s Company Fee.
Again in 2020 (and unbeknownst to BehindMLM till at the moment), the ACC filed a stop and desist utility looking for restitution and administrative penalties.
Named defendants within the ACC’s utility are:
- My Dealer Coin – a $550 a day Ponzi scheme reviewed on BehindMLM in April 2017 (collapsed late 2017);
- Now Mining – a day by day returns Ponzi scheme reviewed on BehindMLM in December 2017 (collapsed mid 2018);
- Jonathan Yelemian Sifuentes Saucedo (aka Jonathan Sifuentes) – cited as a Brazilian nationwide who’s “domiciled primarily in Texas”, suspected of founding My Dealer Coin or on the very least being a part of the chief staff;
- Mario Sosa – an Arizona resident, promoter of My Dealer Coin and Now Mining;
- Moises Herrera – an Arizona resident, then Vice President of KASA Radio (now La Indiscreta FM), a promoter of My Dealer Coin and Now Mining; and
- Carlos Parra – an Arizona resident, then Director of KASA Radio (now La Indiscreta FM), a promoter of My Dealer Coin and Now Mining
The ACC’s utility teams claims that My Dealer Coin (MTCoin)
focused the Hispanic neighborhood by way of quite a few pastors at native Hispanic Christian church buildings and a Hispanic Christian radio station.
In whole, from March 2017 and into 2018, Respondents provided and bought a minimum of 194 investments to roughly 185 completely different traders for a complete of a minimum of $1,614,997, with three investments in Now Mining totaling $106,500 and the remaining $1,508,497 in MTCoin.
Sifuentes provided and bought MTCoin investments to a minimum of 12 individuals for a complete funding quantity of a minimum of $126,000, these individuals invested based mostly on Sifuentes’s representations.
Sosa provided and bought MTCoin investments to a minimum of 26 traders for a complete of roughly $297,800, these individuals invested based mostly on Sosa’s representations.
Herrera provided and bought MTCoin investments to a minimum of II individuals for a complete of a minimum of $221,500, these individuals invested based mostly on Herrera’s representations.
Parma provided and bought MTCoin investments to a minimum of 17 individuals for a complete of a minimum of $229,000, these individuals invested based mostly on representations that Parma made.
MTCoin traders had been advised they’d have the ability to withdraw money from their earnings of their MTCoin account (with accounts serviced by an organization known as CoinBase) quickly after they invested.
A number of traders invested as early as March 20 17. The traders, nonetheless, had been by no means in a position to withdraw money from their accounts as promised.
Respondents failed to tell MTCoin traders that earlier traders had not been in a position to withdraw money from their accounts as promised
4 traders acquired returns totaling roughly $28,000. All of the remaining investments had been misplaced.
Of Now Mining, the ACC wrote;
Starting in fall 2017, Respondents Sosa, Herrera and Parra additionally bought investments in one other cryptocurrency funding, Now Mining.
Herrera, Parra and Sosa failed to tell Now Mining offerees and traders that they’d bought MTCoin investments to a number of individuals, an funding that turned out to be nugatory.
This info would have been materials to traders in assessing Herrera’s, Parra’s and Sosa’s incapability to worth investments that they had been promoting.
Now Mining provided and bought a minimum of three investments to Arizona traders totaling roughly $106,500.
Sosa provided and bought Now Mining investments totaling roughly $80,000 to a minimum of one particular person, this particular person invested based mostly on Sosa’s representations.
Herrera provided and bought investments in Now Mining to a minimum of two individuals for a complete funding quantity of a minimum of $25,000, these individuals invested based mostly on Herrera’s representations.
Parra provided and bought investments in Now Mining to a minimum of two {couples} for a complete of a minimum of $26,500, these individuals invested based mostly on Parra’s representations.
The ACC’s utility goes on to accuse the respondents of committing securities fraud, in violation of the Arizona Revised Statutes (A.R.S.).
The Division requests that the Fee grant the next reduction:
- Order Respondents to completely stop and desist from violating the Securities Act pursuant to A.R.S. §44-2032;
- Order Respondents to take affirmative motion to appropriate the situations ensuing from Respondents’ acts, practices, or transactions, together with a requirement to make restitution pursuant to A.R.S. §44-2032;
- Order Respondents to pay the state of Arizona administrative penalties of as much as $5,000 for every violation of the Securities Act, pursuant to A.R.S. §44-2036;
- Order that Respondents and Respondent Spouses be topic to any order of restitution, rescission, administrative penalties, or different acceptable affirmative motion; and
- Order some other reduction that the Fee deems acceptable.
Following failed motions to dismiss, Now Mining, Sifuentes, Sosa, Herrera and Para settled with the ACC. My Dealer Coin failed to reply and was issued a default order.
On August 14th 2021, Mario Sosa and his spouse agreed to completely stop and desist committing securities fraud in Arizona.
The settlement additionally noticed the Sosas consent to $155,300 in restitution and a $20,000 administrative penalty.
On December twenty eighth 2021, Now Mining agreed to completely stop and desist committing securities fraud in Arizona.
The settlement additionally noticed Now Mining consent to $45,500 in restitution and a $10,000 administrative penalty.
On April twenty eighth 2022, My Dealer Coin acquired a default order to stop and desist committing securities fraud in Arizona.
My Dealer Coin was ordered to pay $1,162,747 in restitution, in addition to a $75,000 administrative penalty.
Additionally on April twenty eighth 2022, Carlos Parra and his spouse agreed to completely stop and desist committing securities fraud in Arizona.
The settlement additionally noticed the Parras consent to $73,500 in restitution and a $20,000 administrative penalty.
Moises Herrera has filed a movement to dismiss on the grounds he’s “cognitively impaired”.
As per a submitting in February 2022, Herrera has booked himself in for a neuropsychological analysis. At time of publication the result of Herrera’s movement to dismiss is pending.
Jonathan Sifuentes filed a movement to dismiss in March 2021. The movement was denied in April 2021.
Sifuentes filed a solution to the ACC’s utility in February 2022. In his reply, Sifuentes principally denied the allegations or claimed he didn’t know something about them.
Sifuentes is heading in the direction of a showdown trial with the ACC later this yr. It’s my opinion that he’s unlikely to prevail.
Of explicit notice is Sifuentes founding Xifra Life-style in late 2019.
Xifra Life-style provides traders 200% returns, on the ruse income is generated through buying and selling and hashish plantations.
BehindMLM reviewed Xifra Life-style in late 2020, concluding it was a easy crypto Ponzi scheme. Not not like MT Coin and Now Mining.
Based mostly on web site site visitors estimates, nearly all of Xifra Life-style traders are believed to be from Mexico and the US.
Xifra Life-style represents it’s a Mexican firm by means of a Mexican company handle supplied on its web site.
Sifuentes initially hid that he was behind the corporate from traders. George Goodman was introduced as Xifra’s President and CEO.
That Sifuentes was behind Xifra Life-style was made public following his arrest in Mexico earlier this yr.
Mexico has begun cracking down on Xifra Life-style and Sifuentes.
The Ponzi scheme was issued a securities fraud stop and desist final September. This was adopted up by a securities fraud advantageous in December.
Sifuentes has not been seen or heard from in public since his January 2022 arrest. His present standing is unknown.
Of concern is Xifra Life-style traders reporting withdrawal delays since late April. Xifra Life-style additionally introduced it was rebranding as Decentra, and there’s speak of a transfer to Dubai.
Dubai is the MLM rip-off capital of the world. A transfer there would put Sifuentes out of attain of US and Mexican authorities.
Keep tuned for updates on Sifuentes’ Arizona securities fraud listening to, in addition to Herrera’s movement to dismiss.
Replace 2nd June 2022 – As per a Could nineteenth submitting, Herrera has been assessed and located to be
not competent to take part within the two-week trial set in August of 2022.
A choice on his and his spouse’s Movement to Dismiss stays pending.