The SEC is ready to face off in opposition to the Mining Capital Coin defendants on Might nineteenth.
At stake are the thousands and thousands in ill-gotten positive aspects Capuci allegedly stole by his Mining Capital Coin Ponzi scheme.
The SEC’s Mining Capital Coin case was filed below seal on April seventh. We don’t normally see MLM associated SEC circumstances filed below seal.
On this occasion, the SEC filed below seal to stop the MCC defendants from “safeguarding” or “locking down” property earlier than judicial aid was granted.
Aid sought be the SEC included
(1) repatriation of ill-gotten positive aspects again to america;
(2) an order requiring Capuci and Pires to give up their passports to the Clerk of Court docket; and
(3) an order prohibiting Capuci and Pires from leaving america till they’ve totally complied with the Court docket’s Orders.
The SEC had already acknowledged it believed defendants Luiz Capuci (proper) and Emerson Pires had fled to Brazil.
The SEC believes Capuci and Pires are each Brazilian residents at the moment residing in Brazil.
Capuci additionally holds United States citizenship.
So I consider the requested aid was a hedge in opposition to the chance Capuci and Pires remained within the US.
Felony expenses have since been filed in opposition to Capuci. He hasn’t been arrested so it seems he has certainly fled to Brazil.
Supporting declarations accompanying the SEC’s Grievance state;
Capuci left his residence in Florida and moved to Brazil in July 2021, after the SEC issued subpoenas within the Investigation on June 29, 2021.
Based on the SEC, Capuci returned briefly to Florida in March 2022 earlier than leaving once more for Brazil.
On the root of the SEC’s issues is ongoing conduct by Capuci and Pires with respect to their Mining Capital Coin ill-gotten positive aspects.
Of their criticism, the SEC detailed
an online of entities and financial institution accounts managed by Defendants and used to siphon buyers’ funds.
Defendants allegedly spent thousands and thousands of {dollars} on journey, luxurious automobiles, a yacht, and actual property, amongst different issues.
The SEC additionally alleges that Capuci obtained about $18.5 million in cryptocurrency property.
After the SEC issued subpoenas in its investigation, Capuci started to shut financial institution accounts and liquidate a variety of property.
Capuci’s spouse, Stephanie Cassia Capuci (aka Stephanie Lira), is alleged to have assisted Capuci launder funds by financial institution accounts held and shell firms registered in her title.
Stephanie Cassia Capuci is believed to have fled to Brazil with Capuci and their son after his March 2022 go to to Florida.
Documented spending of MCC investor funds by Capuci consists of;
• $9,700 on attire, which incorporates luxurious shops like Louis Vuitton, Salvatore Ferragamo, and Gucci;
• $23,400 on marina charges and different boating expenditures;
• $26,700 on one yr of kid assist to a person (believed to be) Capuci’s first ex-wife;
• $33,110 in further funds, by way of numerous digital fee apps, to Capuci’s first ex-wife;
• $5,200 for pool development and upkeep;
• $21,900 on leisure, together with golf membership memberships, streaming providers, and Apple merchandise;
• $30,650 on meals;
• $141,745 on home and worldwide journey;
• $221,000 on funds associated to bikes, luxurious vehicles, and different automotive leases;
• $36,000 in Zelle funds to Capuci’s present partner; and
• $36,500 in Zelle funds to E&J Granite Set up LLC, which is managed by Pires.
Pires spent
• $1 ,737 at Half Worth Mattress;
• $2,742 at Ashley House Shops;
• $260 for Disney World tickets;
• $15,600 on airline tickets;
• $3,800 on lodges;
• $10,500 on purchases from shops that seem like situated in international nations, together with in China, Korea, Poland, Turkey, United Kingdom, Germany, and Spain; and
• $7,000 at Diamond Vault.
Each lists are under no circumstances exhaustive. They solely cowl two financial institution accounts associated to MCC between 2018 and 2020.
All through the course of the SEC’s investigation Capuci labored to actively conceal proof. This consists of threatening buyers.
In a single transcript, detailing statements allegedly made by Capuci upon studying of potential investor complaints to the SEC, Capuci acknowledged;
In the event that they need to assist to go to SEC I may help them, I can block their account after which they go to SEC with out the proof they’ve in opposition to MCC and myself.
Particularly the proof they … go to MCC and join with none restriction.
Primarily based on proof submitted to the courtroom by the SEC, a Non permanent Restraining Order was issued in opposition to the MCC defendants on April twenty first.
The obvious lack of regret proven by Defendants, their continued possession of buyers’ funds, and the benefit with which they might revive an analogous scheme by way of the web offers this Court docket motive to consider that injunctive aid is critical to stop Defendants from participating in future violations of the securities legal guidelines.
Accordingly, the SEC has made a enough exhibiting in assist of a TRO.
The SEC informs the Court docket that Defendants started disposing of their property as quickly as they obtained SEC subpoenas.
A minimum of one Defendant, Capuci, is actively winding down his property in america.
The Court docket finds that there’s good motive to consider Defendants will conceal, switch, or in any other case dissipate their ill-gotten property until these property are restrained.
A freeze of all Defendants’ property is subsequently applicable presently.
A preliminary injunction listening to, with the purpose of creating aid granted within the TRO everlasting, has been scheduled for Might nineteenth.
Two further notes is that firstly SEC filings element EmpiresX accounts below the management of Emerson Pires:
EmpiresX was a follow-up Ponzi scheme Pires launched with Flavio Goncalves in mid 2021.
EmpiresX collapsed after just a few months however, based mostly on an information leak, is believed to have defrauded customers out of at the very least $60 million.
Just like threats made in opposition to Mining Capital Coin buyers by Capuci, Pires threatened EmpiresX buyers who complained with authorized motion.
Past detailing EmpiresX financial institution and Coinbase accounts, EmpiresX itself isn’t a part of the SEC’s Mining Capital Coin litigation.
The second observe pertains to appearances by attorneys representing Capuci from Wellman & Warren.
Scott W. Wellman entered an look for Capuci on Might ninth. Placing apart Wellman & Warren’s questionable affiliation with MLM Ponzi schemes through the years (USFIA, Crypto World Evolution, iPro Community, Enigma Community), Wellman’s look isn’t in any other case noteworthy.
MLM Ponzi scammers want illustration and somebody has to do it.
What’s noteworthy is a weblog submit on Wellman & Warren’s web site, dated September twenty fifth 2020.
Chris Wellman of Wellman & Warren defended Mining Capital Coin Worldwide Inc. (“MCC”) and its members in opposition to the Securities Trade Fee (“SEC”).
On this litigation, the SEC claimed that MCC and its members had been working a enterprise in violation of securities legal guidelines.
After a yr of defending MCC, the SEC concluded they might not be recommending an enforcement motion.
This can be a nice win for MCC and its members. Wellman & Warren needs them the very best on their endeavors.
Whether or not the SEC truly disclosed to Wellman what its plans had been again in 2020 is unclear.
In all probability not, given a yr and a half later they might go on, the truth is, to file go well with in opposition to Mining Capital Coin.
It seems Wellman & Warren didn’t see the DOJ coming both…
Replace twentieth Might 2022 – There’s been a little bit of a changeup with respect to the preliminary injunction however, pending any objections, it’s trying just like the injunction can be granted in June.