Carlos Garza is brother to Homero Josh Garza, the former “CEO” of GAWMiners and main perpetrator of the Ponzi scheme that bilked investors out of millions of dollars. Carlos was Josh’s right hand man and main salesman. It was Carlos’s job to get wealthy investors to put large amounts of money into GAWMiners and Paycoin. An informal investigation into GAWMiners by the Securities and Exchange Commission was announced in February of this year but leaked a month earlier by Coinfire.io, an online magazine devoted to cryptocurrency news. Carlos had to know he’d be involved in the investigation so it should have been no surprise that the SEC wanted to ask him some questions and supply certain documents. He had months to prepare and hire a lawyer. Instead he dicked the SEC around and requested extentions to delay his appearance. When Carlos finally showed up, he did so without the requested documents and avoided answering questions in an attempt to stonewall the investigation.
That’s how you DON’T want to behave when called before the Securites and Exchange Commission. Whoever told Carlos Garza to not cooperate gave some very bad advice. Garza was clearly informed he had two choices in complying with the SEC: either answer the questions or plead the 5th-as in the 5th Amendment where you refuse to answer to avoid incriminating yourself. Carlos chose an imaginary third option he kept parroting:
“I am extremely frightened. I don’t understand this type of law at all. I’m more than willing to help but I want a lawyer and I can’t afford one.”
What a potato. The SEC investigation was originally an informal inquiry but has now escalated to a formal investigation which empowers the SEC to subpoena individuals as witnesses. Due to his lack of cooperation, the SEC went to court and obtained an enforcement subpoena to compel Garza to answer questions and provide the requested documents.