The Securities and Exchange Committee of United States demands that Carlos Garza of GAW Miners either give testimony on “GAW Miners” case or comply with administrative subpoena initiated by the SEC. Carlos Garza is the brother of GAW Miners CEO Josh Garza.
According to the document published by the Count District of Massachusetts, Carlos Garza can choose between the two options:
“Respondent, Carlos R. Garza, shall show cause why he should not comply with the administrative subpoena directing him to testify before, and produce documents to, the Commission staff; or shall provide testimony at the Commission’s Boston Regional Office and produce all non-privileged documents in his possession, custody or control responsive to the Commission’s subpoena.”
The document is a part of the investigation that began when the SEC filed a suit against GAW Miners firm. Commission aims to check whether the company breached the law while issuing its own cryptocurrency ‘paycoin’.
“The SEC is also investigating whether the company operated a Ponzi scheme,” says CoinDesk.
Some members of Bitcoin community began questioning the operations of Gosh Garza long before the SEC. This January, a group of determined bitcoiners put to /r/bitcoin several posts about CEO of GAW Miners Josh Garza. Garza demanded the posts to be removed. The administrator (Theymos) removed some of the posts upon review.
Later in April, an electric company sued GAW Miners for $350,000. The bitcoin mining company was accused by Mississippi Power Company, an electricity provider in the U.S., of breach of contract and unlawful enrichment. Now GAW Miners is mentioned in the Massachusetts court paper – and the outcome of the case is not obvious yet. CoinFox will cover the story.