Josh Garza Finally Pleads Guilty to Fraud

April 20, 2017 Facebook Twitter LinkedIn Google+ Mining

As you can see in this document, sent to victims of the Josh Garza pyramid scheme called GAW Miners, Paycoin, et cetera, Garza is scheduled to plead guilty to one count of wire fraud on June 1st. He was previously facing three charges, but high-powered law firm Ballard Spahr did precisely as predicted in our last article, whittling the charges down to one in exchange for a guilty plea. Garza was initially facing securities fraud charges as well as selling unregistered securities. Each securities fraud charge carried up to 25 years and a million dollar fine, whereas wire fraud carries a maximum of 20 years penalty as well as fines.

It is true that “white collar criminals” don’t often get harsh sentences, but it must be kept in mind that the government views Garza’s actions as especially damaging because he used technology they don’t understand. As such, and given the history of cases involving cryptocurrencies (see Ross Ulbricht and the scandal), Garza may just get the book thrown at him.