Commodity Futures Trading Commission v. Garcia

CourtDistrict Court, S.D. Texas
DecidedSeptember 21, 2021
Docket4:20-cv-03185
StatusUnknown

This text of Commodity Futures Trading Commission v. Garcia (Commodity Futures Trading Commission v. Garcia) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commodity Futures Trading Commission v. Garcia, (S.D. Tex. 2021).

Opinion

September 21, 2021 UNITSETDA TDEISS TRCIOCUTR T Nathan Ochsner, Clerk SOUTHEDRINS TROIFCT TE XAS HOUSTODNI VISION ) COMMODITFYU TURTERSA DING) COMMISSION, ) CivAiclt Nioo4.n: 20-cv-03185 ) Plaintiff, ) ) v. ) ) MAY COA LEXMIASL DONADO ) GARCICAE,S ACRA STANEJDOAE,L ) CASTANEGDAAR CIaAn,Rd O DRIG)O JOSCEA STRMOO LINjAo,i dn/tbl/ya) GLOBATLR ADICNLGU B, ) ) Defendants). ORDEORF F INAJULD GMENBTY D EFAULPTE,R MANEINNTJU NCTION, RESTITUTCIIOVNMI,OL N ETAPREYN ALTAYN,DO THEERQ UITABLE RELIAEGFA INDSETF ENDARNOTD RIJGOOS CEA STRMOO LINA I. INTRODUCTION OnS epte1m12b,0e 2rP0 l,a iCnotmimfofFd uittuTyrr easdC ionmgm ission ("Commiosr"s CiFoTfnCi""al )C e odm plfoarIi nnjtu nRcetlRiieveseft ,i CtiuvMtioilno ent,a ry PenaalntOdit ehEseq ru iRtealb(il"eeCf o mpolr"a CionImt.pa"" g )a Dienfsetn RdoadnrJtio gsoe CasMtorlo(i "nCaa satnrdo "oj)to,hi denortislbn yug s iansGe lsosTb raald Cilnu(gbE .CN Fo . l)ThCeo mplsaoiuingnthj tu nacnotdti heveqeru irtealbailswee ef al,stl h iem posoifct iivoinl penaflotvrii eosl,oa tftih Coeon msm odityA cE(tx" cAhc7atU n".g)Se§,. § 1C -.2 (62 0a1n8d) , thCeo mmission'(s" RReegguullpaarttoiimoounnlssg" a)t e1d7 C .tFhp.etRr1s.e-. u1 n9d0e.r1,0 (2021). TheC omplaalilntethgfr aeotsma t Aluegaus2st0t 1t 6h roOucgtho2 b0e1(r7t he "RelPeevarnito d"M)a yCAcalose tMxraiols,d oGnaard(co"i Maa ldoCneasCdaaors" t)a,n eda, anJdo Ceals taGnarec(dicaao lle"cDteifevnedlaoynp,te sr"ua)nt,dith enenrg a m"eG lobal TradCilnu(gb" "G TfrCa"u)d,u sloelnitaclltiye t a2es7cd tu stotmodee rpsoa sltie ta$ s9t8 9,000 ionr dtesorp eciunpl raimtcoeev emoefBn ittsc aod iinga,is tsa(elCt o.m ,rp1,rl-. 2T )h e Complfuaritnahtle lrte hgaets Desfoelnicdcuaisnttteosudm s eimrnusgl tmieptlheio ndcsl,u ding aw esbi Ytoeu,T vuibdees ooscm,ie adlai naid,n -pmearrskoenpt riensge n(tCaotmi,rp1o l7n.-s . 21D)efendants mtioas crteaupnaprdloe tseennttieadtl h pecu urpsotroetmxeetdrelsny s ive trading oeftx rpaeedrmeiprelsnob cyyGee T dCa ,n tdh eex peecarntiendag nsbd o nutsheast GTCm arkedtoicnugmg eunatrsafo nrat lele dc u(sCtoomm,rpe1,rlran .s d2 . 2 -2T6oc) o nceal

thefraiurDd e,fe ndcaanutmssie sdl etardaidnign g tsobt epa otseotmneeldniT tnhsee .s e misletardaisdutigan gt edminedona ttc sc uratelByi trcteorfliaenpdc uitrpn ogtr htee dly underbtyDa ekfeennd a(nCtosm,r.p3,r la . n2 d7 T)h Ceo mplaalilntethgD aeetsfe ndants' condvuicotlS aetcet6dci( o)o f tn h Ceo mmoEdxicthyaA nc(gtthe e "C7EU A."S)§.9, C( .1 ) (201a8nC)dF, T RCe gul1a8t0i1.o7Cln ., F §.1R8.(0 2.0l2( 1C)o.m,r p5 l). II. PROCEDIUDRSALT ORY OnS epte1m12b,0e 2rt0 hC,eo mmisfislieiodtCn so mpl(aEiCnNFto 1..) O n Decem3b12e,0r 2t 0hC,eo mmissseirCovanes dwt irttohh Ce o mpl(aEiCnNFto 3..0 .C)a stro

failteaodn sowreo rt herrewsispteoto nh Cdeo mplaint;P laacicanoptrpidlfoffiire ne ngdtl ryy, odfe fapuulrts tuoFa endteR rualolefC ivPirlo cedu(rEeC N5Fo55 .7( O)an )A .u gu1s2t, 202t1hC,eo urt Cldeerfakau stel oCnt at setr(reEodCN. Fo 5.8 T)h eretahCfteoe urdr,it r ected Plaitnmoto ivfoffer d efajuuldtg amgeaniCtna ssottrno o rb efoSreep te7m2,b0 e2r1 .N o(.E CF 596,1 ) The Comhmainsso sswiu obnm iitttMesod t ifoorEn n torfDy e fauJlutd gment, PermaInnejnutn ction, MRoensetPtieatnryua atlnitOdoyt n,hE, eq ruC iiRtveailblAil geeaf i nst Cas(t"rMoo tpiuorns"tu)Foa e nRdt..C iPv5..5 (ba)sw( e2al)sal,s uppoMretmionrga onfd um La(w' 'Memoraanandttd aucmh"m)e nt(sE CNtFoh s6e.2ar ne6dt3 oT).h C eo uhrats consicdaerreetfudhlC elo ym pltahiaenl tl,e goafwt hiioacnrwhsee ll-palnhedea rdteeabdky e n ast rtuheMe,o tiaontndh, Me e moranBdeuifumnl.gla_ yd viistneh pder emtihsCeeo su,r t hereby: GRANTS thCeo mmisMsoitoianon'endsn ttehrfoesl lowFiinngdo ifFn agacsnt d ConcloufsL iafiownn dsi Cnagsl tiraoab stl aoel v li olaats�i lolneisgnt e hCdeo mplaint.

AccordtihCneog ulnryot,iw s stuhfoeels l oOwridnweghr i (cihd):e tertmhiCanates vsti rool ated Sect6i(ocn)7U ( .lS)§.,9 C (.1 ) (2R0e1g8u)l;1a 8t0ai.no1ldn7C( .aF).,1R 8.0§.( l2(0a2()0i )i;) impoosnCe ass tro apS etrremeatin nejnutna cnt(dii ooirnid;)Ce arsstt opr aory e stiatnaud t ion cimvoinle pteanrayl ty. IIIF.INDINGSO FFA CT A. ThPea rties 1. PlaiCnotmimffo FduittuTyrr easdC ionmgm isisasin io nnd epfeednedreanlt regulaagteocnrhcyay r bgyCe odn gwriertsehss pointfosyrai dbmiilniasnteden rfoirntcghi en g proviosfti hAoecn 7tsU , . S§.§C1 .- 2(620 18t)hC eoa mnmdi sRseigounl partoimounlsg ated there1u7Cn .d.FeRp r.t, 1s -.1 90) .( 2021 2. Defendant Rodrigo Jose Castro Molina is an individual residing in Houston,

Texas. He is also known by the names Rodrigo Castro, Jose Molina, and Jose Castro. He has never been registered with the CFTC. B. Defendants Solicited Customers to Purchase Bitcoin with GTC 3, In 2016, Defendants began to market a new business called GTC. The stated purpose of GTC was to offer customers an opportunity to profit from speculative trading that was based upon price fluctuations in Bitcoin. 4, Although Defendants marketed Bitcoin trading using the GTC name, GTC did not exist as a separate legal entity. 5. During the Relevant Period, Defendants continued to promote the GTC business

_ using numerous channels, including a web site, www.gtcexchange.com (“GTC web site”); a smartphone app called “GTC Digital”; videos posted to a YouTube channel; and a Facebook page called Global Trading Club. The GTC web site and Facebook page presented Castro as a key leader in the company. On the GTC web site, Castro was listed a member of GTC’s “Master Council Leadership”; on the GTC Facebook page and Castro’s personal Facebook page, Castro was called a “Financial Advisor Bitcoin” and a “Master Council” for GTC. 6. Additionally, throughout the Relevant Period, Defendants made representations directly to actual and potential customers during GTC “cryptocurrency” seminars held by Defendants in Houston and elsewhere in the United States. During these seminars, Defendants shared a GTC marketing presentation, which contained the same representations found on the GTC web site and in the YouTube videos. = 7. The GTC seminars conducted by Castro included the following: ¢ In September 2016, Castro and Maldonado spoke with potential customers in Los Angeles, and Castro spoke with potential customers in Las Vegas. Castro advertised these seminars in Spanish-language posts on Facebook;

• InS epte2m0b1Ce6ar,s tCreosC,aa rs taJnoeCedalas ,t aGnaerdcaain ad, Maldohnoasdato e sde amDtirn uaIrrny an n Sdu iitHneo su stCoans.tr o advertthsiees meiidnna a rS panispho-oslntFa ancgeubaogoek . • InN ovem2b0e1Cr6a ,s stproowk ietp ho tecnutsitaoilmMn ei rasmH ie. advertthsiiessme idin anaS rp anish-plooasnntF g aucaegbaeosw o ekal,sal Spanish-mlualntgimulaaergvkeeew lte isbni wgtwe w,n. iuversomilnm.com, whiCcahs itrrsoe fereansac" esdofu cnidoa dor" a(s"t foruanndsilnagted member""M)a saItnnedtr e rna"(c tiroannaasls"l Iantteedrn atioonfal Mast OTCC.a satlrpsourpo o rttaoec dh i"euevnxe p locsrievcoie mnai peenntaos domse se(st"r ansals"ae txepdlg orsoiwivtthne w soh omrotn tfohrsO "T)C ; and • InD ecem2b0e1Dr6e ,fe ndhaonsttsOe TdCh oal ipdaarfoytrp y o tential custoamthe oratis eHn lo ustMaolnd.o CneasdCaoar,s taJnoeedla, CastaGnaerdcaainR ado, d rCiagsoat ttreon ded. 8. Defendmaanrtkste htOeeT dCb usitnone osns- Englirsehs-isodpftee hnaetksi ng UniStteadTt heOesT. Cw eb hsiigthel KiogrhetaaennSdd-p anish-speaking repre thbeu siMnaelsdso.cn iardcouS lpaatnaeinKdsdo h r etarna nsolfta htOeiT oCmn asr keting presetnCota astatinrotdonh o et hDeerfe ndaaswne talssol, t hienrd ivwihdmoua arlkste htee d OTCb usionnbe eshsoa Dfle ffe ndaTnhYteo s u.T uvbiedw eeorasel t sroa nsilnSatptoae ndi sh, Koreaanondt, h leanrg uages. C. DefendMaandtFesa lasneMd i sleRaedpirnegs ewnhteaSnto iloincGsiT tCing Customers 9.

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Commodity Futures Trading Commission v. Garcia, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commodity-futures-trading-commission-v-garcia-txsd-2021.