Washington Pastor Defrauds Congregants of $5.9M in Fake Crypto Scheme

A Washington pastor, Francier Obando Pinilo, has been accused of orchestrating a fraudulent cryptocurrency investment scheme, defrauding church members and others of $5.9 million.

Pinilo allegedly lured victims by promising guaranteed high returns of up to 40% monthly through his crypto business, Solano Fi, which investigators later revealed was a sham.

Arrest and Allegations

Pinilo, leader of the Tiempo de Poder Church in Pasco, was apprehended at his Miami residence on December 5 following a federal indictment.

He faces 25 counts of wire fraud and one count of operating an unregistered money-transmitting business.

Prosecutors claim the pastor leveraged his position of trust and authority to exploit unsuspecting congregants and other individuals with limited knowledge of cryptocurrency.

According to court documents, Pinilo operated his Solano Fi investment program like a Ponzi scheme, using funds from new investors to pay earlier participants.

The pastor allegedly fabricated online account statements to convince victims of non-existent profits while funneling the majority of the money into personal accounts.

Details of the Scheme

The fraudulent activities reportedly spanned from November 2021 to October 2023. Pinilo targeted Spanish-speaking individuals through church services, public gatherings, and social media platforms such as Facebook and Telegram.

At various events, he pitched his investment scheme, portraying it as a way to uplift individuals from poverty.

Church members, in particular, were promised substantial and risk-free returns. Some victims were urged to recruit new investors as a condition for withdrawing their funds, reinforcing the Ponzi-like structure of the scheme.

The fallout has left victims grappling with significant financial losses. One congregant, speaking anonymously, expressed dismay at being deceived by someone they trusted. "He preached about faith and honesty while taking our hard-earned money," the victim stated.

Legal Repercussions and Broader Implications

If convicted, Pinilo could face up to 20 years in federal prison for each count of wire fraud. The Commodity Futures Trading Commission (CFTC) has also filed a civil lawsuit against him, citing violations of federal commodities laws.

U.S. Attorney Vanessa Waldref criticized the pastor's actions, highlighting the growing prevalence of cryptocurrency scams.

“Fraudulent investment schemes are not new, but cryptocurrency scams are a modern method fraudsters use to exploit hardworking, honest people,” Waldref said.

A Wake-Up Call for the Crypto Industry

This case underscores the need for increased vigilance in the cryptocurrency space. Experts warn investors to thoroughly vet opportunities and seek advice from credible sources to avoid falling prey to similar schemes.

Regulatory bodies like the CFTC are ramping up efforts to combat crypto-related fraud, but the evolving nature of these scams continues to challenge enforcement

As the legal proceedings unfold, investigators are delving deeper into the extent of Pinilo's operations and potential accomplices.

Meanwhile, the Tiempo de Poder Church has ceased operations, leaving many of its former members seeking answers and closure.

The case serves as a stark reminder of the importance of due diligence and skepticism in the face of investment opportunities that seem too good to be true.