Operator, employee of Bellflower company are charged in $1 million crypto investment scheme, DA says

LOS ANGELES (CNS) — The operator and employee of a Bellflower monetary providers company are accused of allegedly stealing greater than $1 million from low-income, primarily Spanish-speaking victims via a fraudulent cryptocurrency investment scheme, officers introduced Friday.

Yone Rios, 53, of Rancho Cucamonga and Erwing Cuevas, 35, of Norwalk are every charged with 30 felony counts of grand theft. Rios is moreover charged with one felony depend of forgery referring to an merchandise exceeding $950 in worth and one felony depend of passing a non-sufficient funds examine exceeding $950, in response to the Los Angeles County District Lawyer’s Workplace.

Between September 2020 and December 2022, Rios and Cuevas allegedly operated the scheme underneath the guise of a cryptocurrency mining enterprise generally known as Zukre Platform Company. Though Zukre claimed to put in, keep and function computing tools to mine cryptocurrency, the company carried out no such operations and was not a registered enterprise in California, prosecutors mentioned.

The defendants allegedly recruited victims via their monetary providers enterprise, Fuego Tax, also referred to as Supremo Tax, in Bellflower. Victims visited Fuego Tax to acquire help making use of for high-limit bank cards and loans, however have been typically urged to make use of the loans or credit score that Fuego Tax had assisted them in making use of for to pay into the scheme, the District Lawyer’s Workplace alleges.

Prosecutors contend Rios and Cuevas advised victims that the investments have been risk-free, assured and guarded by insurance coverage. They allegedly supplied “purchasers” with written contracts and instructed them to obtain a Zukre- branded cellular software, which purported to indicate ongoing income from their investments, officers mentioned.

Particular person investments ranged from practically $4,500 to $280,000. Regardless of repeated makes an attempt, none of the victims obtained any returns or was capable of recuperate their principal investments, in response to the District Lawyer’s Workplace.

Prosecutors are requesting bail be set for every defendant at $600,000.

If convicted as charged, Rios would face a sentence of as much as 23 years and eight months in state jail, whereas Cuevas would resist 21 years and 4 months behind bars, authorities mentioned.

“My workplace won’t tolerate monetary predators who purport to supply professional providers, however as an alternative supply lies and devastating monetary loss,” L.A. County District Lawyer Nathan J. Hochman mentioned in a press release. “Let me be clear: If you happen to steal from our communities, whether or not in the streets or via subtle investment or cryptocurrency schemes, we’ll discover you and maintain you accountable to the fullest extent of the regulation.”