A federal grand jury for the Eastern District of Washington has recently charged Francier Obando Pinillo, a 51-year-old pastor, with 26 counts of fraud in connection to a cryptocurrency scam. Vanessa Ruth Waldref, the U.S. attorney for the Eastern District, made this announcement last year, revealing that the grand jury had issued an indictment against Pinillo. The pastor was arraigned in a federal court in Washington just yesterday.
The indictment against Pastor Pinillo alleges that he engaged in a fraudulent crypto scheme over a two-year period, from November 2021 to October 2023. During this time, Pinillo reportedly swindled millions of dollars from members of his church. Operating as the pastor of a Spanish-language church called Ministerio Apostolico Profetico Tiempos de Poder, Pinillo enticed his congregation to invest in a crypto platform known as Solano Fi. He claimed to have received the investment opportunity through a divine revelation and assured investors of its safety.
In addition to his church members, Pinillo also recruited investors through social media platforms like Facebook and Telegram. His Telegram group alone had over 1,500 members. Promising monthly returns of 34.9% through cryptocurrency staking with no risk, Pinillo assured investors that they could easily access and withdraw their funds through the online platform. However, the platform only allowed users to view their balances without enabling them to withdraw funds. Instead of investing the funds as promised, the indictment alleges that Pinillo used the money for personal gain.
When investors confronted Pinillo about their inability to withdraw funds, he provided various excuses, such as technical issues with the website or market fluctuations. He even went as far as telling investors that they could only withdraw their funds if they brought in a new investor to buy out their account. Furthermore, Pinillo convinced users to invest more funds in fixing the Solano Fi application so they could withdraw their money.
The FBI conducted the investigation into Pinillo’s fraudulent activities, and Assistant U.S. Attorneys Jeremy J. Kelly and Dan Fruchter are handling the prosecution of the case. U.S. Attorney Waldref expressed concerns about the rise of fraudulent schemes in the crypto space, emphasizing the importance of conducting thorough due diligence before investing in any project, especially those involving cryptocurrencies.
If found guilty, Pinillo could face a maximum sentence of 20 years in prison. It is crucial for investors to be cautious and vigilant when approached with investment opportunities, particularly in the crypto market. The Crypto Basic has previously provided guidance on how to identify and report potential scams, highlighting red flags such as unrealistic returns, unverified smart contracts, lack of transparency, and high-pressure sales tactics.
By staying informed and exercising caution, investors can protect themselves from falling victim to fraudulent schemes in the cryptocurrency space.