TexasBitcoin
SentencedWestern Texas

El Paso Man Sentenced to 7 Years in Prison for Operating $9 Million Ponzi Scheme Disguised as Crypto Investment Firm

Oct 31, 2023 · Sourced to the U.S. Department of Justice

This case reached the sentenced stage in the Department of Justice's public record. Everything below reflects only what the government itself announced, and links to the original release.

84 months (7 years) in prison for wire fraud

Announced

Oct 31, 2023

Status

Sentenced

Defendants

  • Abner Tinocoage 27 · El Paso, Texas · sentenced

Charges

  • Wire fraud

    Abner Tinoco· sentenced to 84 months in prison

Financial actions

  • restitutionRestitution for victims of Tinoco's Ponzi scheme; restitution hearing scheduled in 2024
  • seizure: $9 millionApproximately $9 million in investments deposited into business accounts, more than half spent on personal expenses including luxury cars, private jets, real estate and jewelry

From the announcement

This defendant manufactured a predatory scheme, investing less than half a percent of funds from over a dozen victims who trusted him with millions of dollars in investments. We will continue to strongly prosecute rapacious fraudsters who take advantage of unsuspecting victims while also holding the defendants responsible for those victims' lost funds.
Jaime Esparza, U.S. Attorney, U.S. Attorney's Office for the Western District of Texas
The defendant orchestrated an elaborate cryptocurrency investment fraud scheme that caused extensive financial harm to unsuspecting victims. The FBI El Paso's Complex Financial Crimes Task Force will continue to investigate and seek justice for individuals who fall victim to criminals who cheat and lie their way into victims' pockets for the sole purpose of taking their hard-earned income for their own personal gain.
John S. Morales, Special Agent in Charge, FBI El Paso Field Office

Investigating agencies

Federal Bureau of InvestigationU.S. Attorney's Office for the Western District of TexasCommodities Futures Trading Commission

Case details

Prosecuting office
Western District of Texas
Cryptocurrency Investment FraudLaw Enforcement InvestigationMisappropriation Of FundsPonzi SchemeRegulatory EnforcementVictim RestitutionWire Fraud

Primary source

Every fact above is drawn from the Department of Justice's own announcement — a public-domain government record.

Read the original DOJ release →

This is a research and reference page compiled from public DOJ announcements, not legal advice. Details reflect the government's statements as of its release date and may not capture later developments such as appeals, dismissals, or overturned convictions. Defendants are presumed innocent unless and until proven guilty.