Gaw Miners used to be an organization that was a cloud-based mining system, which essentially functioned just like a Ponzi scheme. It closed down sometime back in 2015.
The founders of the cloud mining platform were on the receiving end of a lot of hate from the bitcoin community due to the unethical conduct that went on behind the scenes. Accusations regarding all sorts of odd mining practices, idiotic package plans, and other stuff of this type of subject matter were thrown around.
Around summer 2016, some Gaw Miner clients ended up suing the company and Stuart Fraser for investor manipulation, hiding true intentions, and the Paycoin scam that brought in millions worth of revenue, leaving investors pocketless.
So, four old GAW Miner investors got together and started suing the pants off of Fraser, after a guilty plea pertaining to wire fraud was released by his partner, Mr. Josh Garza.
Currently, Gaw Miners, Garza, and Fraser stand accused of violating both state, and federal security laws.
Now, what’s really funny is that Fraser used to be an executive for Cantor Fitzgerald, a Wall Street company. Now, perhaps he thought that this would cut him some slack, or maybe the judge wouldn’t crush him. So, he was brave and filed a motion to dismiss all of the accusations. The motion was abruptly denied!
Obviously, Fraser’s lawyer is doing everything he possibly can as per the requirements of his chosen profession. However, I stand with the plaintiffs.
Fraser’s partner, Garza, got totally smashed with penalties totaling $9 million dollars and prison time of up to 20 years. Oh, but there’s one more thing, a federal judge actually smashed Garza once before, two years ago with another $9 million fine which was brought to light by the SEC.
This case is probably going to get a lot more traction in the near future.
It always amazes me when top Wall Street executives get caught doing stupid things like this. When does the point come when you have enough money? Never?
I’m simply loving this statement by the SEC
GAW Miners and ZenMiner did not own enough computing power for the mining they promised to conduct, so most investors paid for a share of computing power that never existed.