A landscape artist turned “trading expert” is accused of stealing $12 million from budding investors.

HOUSTON “Fear of missing out on the next big thing can drive people to make risky decisions.

KPRC 2 is investigating a Houston man accused of harassing the Hispanic community and people who are simply trying to make money for their families by investing in cryptocurrencies. Our KPRC 2 investigation team is exposing what federal officers are calling a Ponzi scheme that has cost some families their savings.

Luxury cars, expensive hotels and chic restaurants

Federal investigators say Mauricio Chavez lived in abundance after defrauding about 5,000 families of more than $12 million.

“So this is my contract right here, CFX Academy LLC,” said Edgar Rodriguez.

Edgar Rodriguez donated $5,000 to CryptoFX, a company owned by Chavez. Rodriguez and his brother-in-law went to the company building on Blalock, where Chavez and other employees held classes, accepted money and made payments.

“And you see people getting $20,000, $30,000 as a referral bonus (and) we are, it actually sounds pretty good,” Rodriguez said.

AT court documents received by KPRC 2 InvestigatesSecurities and Exchange Commission investigators say these payments were made to “create the illusion that they made significant trading profits, when in fact they did not.”

“When everyone gets their profit back, everyone who was part of the company will say, ‘Oh, why don’t you invest more? You’re going to get it back. You saw that you got it back. Why not?” said Illyana Calles, victim of CryptoFX.

It worked. Illyana Calles and her family have received cash back several times, but now they have lost $100,000.

“And it was my mom’s savings. These were my savings. It was my sister’s savings,” Calles said.

A business built entirely on words in the Hispanic community, and SEC investigators say it was also built on lies.

They say Chavez, 41, apparently worked as a landscape designer before he founded CryptoFX, with no known experience, education or training in trading or investment management. He has worked in Houston, New Orleans, Chicago, Waco, Fort Worth, North Carolina and California.

While the Chavez commercials are still all over youtube and social media, it is nowhere to be found. The office building on Blalock is locked, and no one opened the door to the addresses we found for his family members.

How CryptoFX appeared

But in recent court documents, Chavez’s own lawyer agrees with investigators that his client is inexperienced. He writes that Chavez started trading cryptocurrencies with his own money in 2015 after friends asked him to teach them. He gave seminars at Denny’s restaurants, and then the students asked him if he would just trade for them.

In 2020, Chavez opened CryptoFX with two business partners. Chavez’s lawyer stated that CryptoFX had no real governance structure and almost no formal procedures. One business partner died of COVID and another quit, leaving Chavez “to face a managerial task for which he was horribly unsuited.”

Dozens of victims in the Houston area

But his victims, dozens of them, who appeared outside the federal courthouse with photos of Crypto FX employees, they say they stole from them, they don’t buy.

That’s how The SEC alleges that Chavez spent some of the stolen money:

• $460,954 Cars

• Credit card payments of $267,623

• $196,513 retail purchases

• $110,358 for the trip

• $100 935 restaurants

• jewelry for $19,000

• Adult entertainment for $15,000

Nine days after the court froze all of the company’s assets, video footage shows Chavez and other employees in his Blalock office counting money in a plastic bag before leaving the business for the last time.

CryptoFX victims asked to contact investigators

AND court-appointed administrator is now trying to trace any remaining money or assets so investigators can use it to reimburse victims for what they collect if the SEC wins the case. If you have lost money on CryptoFX, you should contact the recipient to let them know.

This site is herewhich includes information about the current case, a dedicated phone line (713-546-5653) and an email address, [email protected]. The SEC urges everyone who has dealt with CryptoFX to use these contacts.

How to check the legitimacy of a trading company

Before investing money in anyone, you should always make sure they are registered with the Securities and Exchange Commission. You can also see if they have been prosecuted or punished in any way.