Pastor Charged in Multi-Million Dollar Cryptocurrency Fraud Scheme

A Miami pastor has been indicted for allegedly orchestrating a multi-million dollar cryptocurrency scam that defrauded over 1,500 investors. Francier Obando Pinillo, 51, is accused of using his position as a pastor to promote a fraudulent investment scheme called "Solano Fi," promising unrealistic returns and exploiting the trust of his congregation.

Key Takeaways

• Francier Obando Pinillo, a pastor in Pasco, Washington, faces 26 counts of fraud.

• The scheme, named "Solano Fi," promised a monthly return of 34.9% to investors.

• Pinillo allegedly used church resources and social media to recruit investors.

• Victims were unable to withdraw their funds, which were instead funneled into personal accounts.

• If convicted, Pinillo could face up to 20 years in prison.

Allegations Against The Pastor

According to the U.S. Department of Justice, Pinillo operated the scheme from November 2021 to October 2023. He claimed that the idea for Solano Fi came to him in a dream, presenting it as a safe investment opportunity. His church, Ministerio Apostólico Profético Tiempos de Poder, became a platform for soliciting investments from congregants, many of whom were Spanish-speaking individuals.

The Scheme's Structure

Pinillo's investment scheme was characterized by several deceptive practices:

• Promised Returns: Investors were lured with the promise of a 34.9% monthly return, which was touted as guaranteed.

• Social Media Promotion: He created a Facebook page and a Telegram group named "Multimillionarios SolanoFi," which attracted over 1,500 members.

• Referral Bonuses: To encourage recruitment, Pinillo offered a 15% referral bonus for bringing in new investors, creating a Ponzi-like structure.

Diagrama y extracto de la acusación formal del gran jurado del 7 de noviembre contra Pinillo. Fuente: CourtListener

Misuse of Funds

Instead of investing the funds as promised, Pinillo allegedly diverted the money for personal use and to pay earlier investors. The online platform he promoted allowed investors to view inflated account balances but did not permit withdrawals. When victims requested their money back, they were often met with excuses about market conditions or website issues.

Legal Consequences

The indictment against Pinillo includes 26 counts of fraud, with a potential maximum sentence of 20 years in prison. The case is being prosecuted by Assistant U.S. Attorneys Dan Fruchter and Jeremy J. Kelley, with the FBI leading the investigation. U.S. Attorney Vanessa Waldref emphasized the challenges of recovering funds in cryptocurrency scams, stating that her office is committed to pursuing justice for the victims.

Conclusion

The case of Francier Obando Pinillo serves as a stark reminder of the vulnerabilities within investment schemes, particularly those that exploit trust in religious institutions. As the legal proceedings unfold, the focus remains on holding accountable those who perpetrate such fraudulent activities, especially in the rapidly evolving landscape of cryptocurrency.

Sources

• Pastor indicted for multi-million dollar crypto grift: DOJ, crypto.news.

• Preacher’s Crypto Scheme: Pulpit Used To Defraud Thousands Of Members, Bitcoinist.

• Former Tri-Cities Pastor Indicted in Multi-Million Dollar Cryptocurrency Scam | Local | bigcountrynewsconnection.com, Big Country News.

• Former Pastor Accused Of Running Cryptocurrency Scam That Stole Millions From Duped Congregants | IBTimes, International Business Times.

• Pastor indicted for fraud over crypto scheme that came ‘in a dream’, Cointelegraph.

• Fraudulent crypto scheme led by pastor faces 20-year prison sentence, Traders Union.