SEC Halts Cryptocurrency Mining And Trading Scheme In South Florida
On May 6th, 2022, the Securities and Exchange Commission (SEC) announced securities fraud charges against a number of parties as part of a cryptocurrency mining and trade scheme, including:
- MCC International Corp. (MCC), doing business as Mining Capital Coin Corp.;
- MCC co-founder Luiz Carlos Capuci, Jr.;
- MCC co-founder Emerson Souza Pires; and
- Other entities, including CPTLCoin Corp.
The total value of the alleged fraud is in excess of $11.3 million. In this blog post, our Miami investment fraud lawyer provides a more detailed explanation of the securities law charges.
SEC Complaint: False Promises Made to More than 65,000 Investors
In a complaint filed in the United States District Court for the Southern District of Florida, the SEC alleges that MCC and its founders Luiz Carlos Capuci, Jr and Emerson Souza Pires marketed and sold cryptocurrency mining and trading packages to investors. The investment opportunity was actively marketed to investors in Florida, the United States, and around the world.
According to the SEC, investors who put money into the program promised astronomical returns. They were told that they could expect a one percent daily return on their initial investment, paid on a weekly basis for a period of 52 weeks. These promised returns were extraordinarily high—far above the market rate.
Unfortunately, the SEC states that the reality did not live up to the representations made to investors. The funds were allegedly being raised on fraudulent grounds. Investor money was diverted to support the lavish lifestyle of Mr. Capuci, Jr and Mr. Pires. In total, the pair used MCC (Mining Capital Coin Corp) to raise more than $11.3 million from at least 65,535 investors.
SEC Obtained Emergency Injunction, Seeking All Appropriate Legal Remedies
The SEC took action to put a stop to the investment fraud scheme. In April of 2022, the United States District Court for the Southern District of Florida put an emergency asset freeze in place. The temporary injunction is designed to stop the defendants from carrying out any more securities fraud through Mining Capital Coin Corp. In addition, the SEC is seeking all appropriate sanctions and remedies. Along with other things, this includes:
- Permanent injunction to stop future securities law violation;
- Disgorgement of all ill-gotten proceeds;
- Payment financial restitution to the investors;
- The imposition of civil monetary penalties; and
- Officer/director bars against both Luiz Carlos Capuci, Jr and Emerson Souza Pires.
The SEC emphasizes that this is still an active and ongoing investigation.
Speak to a Securities Losses Attorney in Southeast Florida
At Carlson & Associates, P.A., our Miami securities fraud attorneys fight tirelessly to do what is best for our clients. As an investor, your rights matter. If you suffered losses in a cryptocurrency-related securities fraud scheme, you may be entitled to financial compensation for your losses. Give us a call now for a completely confidential case review. From our Miami law office, we advocate for the rights and interests of investors in Miami-Dade County, Broward County, Palm Beach County, and beyond.
Source:
sec.gov/news/press-release/2022-81