Pastor Accused of $6M Crypto Fraud Scheme Targeting Congregants
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On December 10, the United States Commodity Futures Trading Commission (CFTC) disclosed that it had filed a complaint against Francier Obando Pinillo, a pastor from Washington State, accusing him of orchestrating a $6 million crypto fraud scheme.
Pastor Allegedly Used Crypto Fraud to Target Congregants
According to a complaint filed on December 9 in Spokane federal court, Pinillo allegedly exploited his position in the church to promote the fraudulent scheme to over 1,500 individuals, many of whom were members of his Spanish-speaking congregation in Pasco.
.@CFTC Charges Washington State Pastor with Fraud, Misappropriation in Multilevel Marketing Scheme Targeting Hispanic Americans: https://t.co/duI1GEzwoA
— CFTC (@CFTC) December 10, 2024
The CFTC claims Pinillo used social media and church connections to market his alleged scheme. Pinillo reportedly told his audience that he was the CEO of several companies, including Solanofi, Solano Partners Ltd., and Solano Capital Investments.
He claimed these companies had developed a “Solano ecosystem” that utilized high-performance crypto trading to deliver profits.
From November 2021 to December 2023, Pinillo promised customers monthly returns of up to 34.9%, stating that he used a bot and advanced software for cryptocurrency trading.
Customers were also encouraged to participate in a staking service called Solanofi 2.0, which allegedly offered guaranteed profits from trading Bitcoin, Ethereum, and Solana.
The CFTC’s complaint alleges that Pinillo’s promises were entirely fabricated. Customers were presented with online dashboards displaying false account balances and statements. The scheme also included a 15% referral bonus, incentivizing participants to recruit others.
False Claims and Unsophisticated Investors
The CFTC also alleged that users were shown an online dashboard that displayed purported account statements and offered a 15% referral fee to encourage others to join.
“These representations and account statements were false,” the complaint stated. “There was no automated computer trading program, there were no customer accounts, there was no trading taking place or profits generated, and Defendant was misappropriating all digital and fiat assets customers transferred.”
The scheme targeted inexperienced investors, especially those unfamiliar with digital asset transactions or commodity trading. The CFTC noted that Pinillo used his influence as a pastor and conducted solicitations almost exclusively in Spanish.
The CFTC seeks restitution for the victims, the forfeiture of funds obtained through the scheme, and a permanent trading ban against Pinillo.
This case underscores the increasing prevalence of crypto fraud schemes that exploit vulnerable communities.
The CFTC, in 2024 alone, reported a record $17 billion in penalties and recoveries, largely due to intensified enforcement in the crypto sector.
While the specifics of this case are still unfolding, the exploitation of trust within religious communities highlights a troubling trend.
Authorities around the world have been cracking down on crypto fraud schemes, including a recent case in Hong Kong where 27 individuals were arrested for a $46 million deepfake crypto romance scam.
The criminals used AI-generated images and deepfake technology to trick victims into fake online relationships and fraudulent investments. Police revealed that victims were shown fabricated transaction records, making it appear their investments were growing, only to discover later that they had been scammed.
