Failed Internet Mogul, Josh Garza and two of his numerous companies GawMiners and Zen Miners were charged in December of 2015 by the SEC with two counts of fraud in the “offer and sale of securities” and one count of “sale of unregistered securities”.
Garza had until December 28th to respond but in his efforts to continue to prove that he’s one of the dumbest people on the internet, he didn’t bother to respond to the SEC’s charges so he loses by default.
In their December complaint the SEC summed up Garza’s scheme quite simply:
“Defendants used the lure of quick riches from a twenty-first century payment system known as virtual currency to defraud investors. Though cloaked in technological sophistication and jargon, defendants’ fraud was simple at its core – defendants sold what they did not own, and misrepresented the nature of what they were selling.”
Below is the January 6th SEC default filing.