SEC Sues California Operator For $26 Million Crypto Pyramid Scam

The last Thursday, the US Securities and Exchange Commission (SEC) filed a civil injunctive action against the operator of an alleged pyramid scheme that raised $26 million from investors. As the latest cryptocurrency news show, SEC sues California operator of an alleged pyramid scheme that managed to raise $26 million from investors.

The defendant is Daniel Pacheco, who is a resident of San Clemente. He was recently charged by the SEC with selling unregistered securities and operating a multi million dollar pyramid scheme. The news that SEC sued California pyramid scheme operator went viral on many best cryptocurrency news sites.

As the files show, between January 2017 and March 2018 Pacheco sold unregistered securities through the California-based companies that he controls – IPro Solutions LLC and IPro Network LLC, as the official press release by SEC shows.

The documents show that SEC sues California operator for $26.5 million through the sale of “IPro Packages” which were basically lessons on how to make profits with an online store as well as a method that provides customers with a recruitment-based compensation plan and the ability to convert the IPro gains to IPro’s own “cryptocurrency” – the Pro Currency.

Therefore, IPro members could gain cryptocurrency redeemable points either as a rebate for package purchases or by recruiting others to IPro. The entire story on how SEC sues California operator was featured on many altcoin news sites.

According to the official complaint, in about 14 months, Pacheco has managed to grow the IPro member base to 20,000 people, each of which was paying a $50 annual activation fee to become active members.

Pacheco, on the other hand, used the money that he made with IPro packages to buy a luxury home for around $2.5 million in Redlands, California and a Rolls Royce for $150,000. The SEC sues California’s crypto pyramid scheme for transferring $1.9 million to Accept Success Corporation – a company that Pacheco created for his daughter – and one that he owned himself.

“Pacheco engaged in a fraudulent pyramid scheme by soliciting IPro members through false and misleading means, including websites, promotional conferences, and in-person meetings, in which he touted the profit-making aspects of IPro’s iPN Compensation Plan, while at the same time diverting IPro funds for his own benefit,” the complaint reads as SEC sues the California pyramid scheme.

The current return on investment for the ProCurrency on CoinMarketCap is at -98.66%, registering a continuous decline since January 2018 as the coming altcoin news and charts show.