Current:Home > FinanceColorado pastor says God told him to create crypto scheme that cost investors $3.2 million-DB Wealth Institute B2 Expert Reviews
Colorado pastor says God told him to create crypto scheme that cost investors $3.2 million
View Date:2024-12-24 00:17:14
A Colorado-based online pastor is facing fraud charges after allegedly pocketing over a million dollars from a cryptocurrency scheme he sold to his followers.
Eligio "Eli" Regalado and his wife, Kaitlyn Regalado, were named on a legal complaint filed to Colorado’s securities commissioner last week, accusing the couple of violating the anti-fraud, licensing and registration provisions of the Colorado Securities Act.
The complaint alleges, among other grievances, that the Regalados targeted a devout community and sold an "unsafe" and "unsecure" product using Eli's religious position to do so. Investors, who were told God had a direct hand in the crypto, have since lost millions, according to the securities commissioner.
INDXcoin: crypto ordained by God
The Regalados first began selling their cryptocurrency, called INDXcoin, to the Denver Christian community in June 2022, raising nearly $3.2 million from more than 300 individuals by April 2023, according to a statement released by the Colorado Division of Securities Thursday.
The couple not only marketed the currency, which was called "illiquid" and "practically worthless" in the legal complaint, to their parishioners but also sold it only through Kingdom Wealth Exchange (KWE), an online cryptocurrency platform that they "created, controlled and operated."
Part of this marketing was telling followers and potential investors that God had spoken directly to Eli and told him to create the crypto and that investors would become wealthy, a claim Regalado doubled down on in a recent video addressing his followers.
"The Lord said: I want you to build this,” he said in the message. “We took God at his word and sold a cryptocurrency with no clear exit.”
He also went on to assure followers his trust in God had not faltered and he believes divine intervention is still to come, saying: “Either I misheard God, and every one of you who prayed and came in — you as well. Or two, God is still not done with this project."
FTC scam protection:FTC tied up in legal battle, postpones new rule protecting consumers from dealership scams
$1.3 million allegedly pocketed
In the video, Eli also confirmed that $1.3 million of the money went into his own pockets, some of which he and his wife used for a home remodel.
“Out of the $1.3 [million], half a million dollars went to the IRS, and a few hundred thousand dollars went to a home remodel the Lord told us to do," he said.
The legal complaint alleges that the Regalados spent the money on more than just God's word, accusing the couple of maintaining a “lavish lifestyle," which included the purchase of a Range Rover, luxury handbags, jewelry, an au pair, boat rentals and snowmobile rides, while investors lost large sums in what they were told was a "low risk, high-profit investment” ordained by God.
“We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies,” Colorado Securities Commissioner Tung Chan said in a statement.“New coins and new exchanges are easy to create with open-source code. We want to remind consumers to be very skeptical.”
Travel cyber safety tips:Here's how to avoid malware, safely charge your phone in public while traveling
Waiting for a miracle
Regalado, who has no prior experience in the financial or crypto sectors, said in the video that their planned exchange technology failed due to technical issues, making it impossible for investors to cash out. He likewise admitted that he had doubts about starting INDXcoin in the first place.
“I said: Lord, I don’t want to do this. I don’t know how to do this. I don’t have any experience in this industry," said Eli. "I don’t know what I’m doing. I don’t want to be caught up in something.”
Still, dozens of followers commented beneath the clip, reassuring the pastor that they believed God would find a solution for him yet. In the meantime, the Colorado Division of Securities is asking anyone who has invested in INDXcoin or any other of Regalado's other businesses to contact them at [email protected] or 303-894-2320.
"What we're believing for still is that God is going to do a miracle," Regalado's video said. "God is going to work a miracle in the financial sector."
Eli and Kaitlyn Regalado and three companies under Eli's name are charged with securities fraud, unlicensed broker-dealer activity, selling unregistered securities and imposition of constructive trust. They are scheduled to appear in Denver District Court next week.
veryGood! (6)
Related
- Pentagon secrets leaker Jack Teixeira set to be sentenced, could get up to 17 years in prison
- Baby killed and parents injured in apparent attack by family dog, New Jersey police say
- LinkedIn goes down on Wednesday, following Facebook outage on Super Tuesday
- Where is Princess Kate? Timeline of what to know about the royal amid surgery, photo drama
- Digital Finance Research Institute Introduce
- Connecticut woman accused of killing husband and hiding his body pleads guilty to manslaughter
- Judge blocks Texas AG’s effort to obtain records from migrant shelter on US-Mexico border
- Brother of LSU basketball player Flau'jae Johnson arrested after SEC title game near-brawl
- Colts' Kenny Moore II ridicules team's effort in loss to Bills
- Biden proposes tax increase on fuel for private jets, casting it as making wealthy pay their share
Ranking
- Why California takes weeks to count votes, while states like Florida are faster
- Letter carrier robberies continue as USPS, union, lawmakers seek solutions
- Oil sheen off California possibly caused by natural seepage from ocean floor, Coast Guard says
- Saquon Barkley hits back at Tiki Barber after ex-Giants standout says 'you're dead to me'
- Tropical Storm Sara threatens to bring flash floods and mudslides to Central America
- Private jet was short on approach to Virginia runway when it crashed, killing 5, police say
- Connecticut woman accused of killing husband and hiding his body pleads guilty to manslaughter
- Brooklyn preacher known for flashy lifestyle found guilty of wire fraud and attempted extortion
Recommendation
-
‘Emilia Pérez’ wouldn’t work without Karla Sofía Gascón. Now, she could make trans history
-
North West to Release Debut Album Elementary School Dropout
-
Report: New Jersey and US were not prepared for COVID-19 and state remains so for the next crisis
-
Ohio Gov. Mike DeWine bypasses Trump-backed Bernie Moreno with US Senate primary endorsement
-
Oil Industry Asks Trump to Repeal Major Climate Policies
-
Sen. Bob Menendez and wife plead not guilty to latest obstruction of justice charges
-
Horoscopes Today, March 10, 2024
-
Appeals court weighs Delaware laws banning certain semiautomatic firearms, large-capacity magazines