A former Washington State pastor is accused of running a cryptocurrency scam that defrauded investors out of millions of dollars.
Federal prosecutors say that Francier Obando Pinillo, 51, ran the scam between November 2021 and October 2023.
Pinillo was pastor at Ministerio Apostolico Profetico Tiempos de Poder, a Spanish-language church in Pasco, Washington.
A federal indictment alleges Pinillo used his position as pastor to induce members of his congregation and others to invest their money in a cryptocurrency investment business known as "Solano Fi."
Prosecutors say Pinillo claimed the idea for Solano Fi had come to him in a dream and that it was a safe and guaranteed investment.
The indictment alleges Pinillo guaranteed a compounding monthly return of 34.9% with no risk.
Pinillo allegedly told investors they could watch and withdraw their money but the online application was actually designed to allow investors to see fraudulent balances and supposed gains but did not permit them to withdraw any money.
When victims asked for their money, the indictment claims Pinillo claimed he could not return the assets until cryptocurrency markets improved.
Prosecutors say he actually took their money and made cryptocurrency transfers into accounts controlled by him and his co-schemers.
Additionally, the indictment alleges that Pinillo convinced investors to recruit other investors, promising that the person who made the referral would get bonus earnings.
Pinillo was arraigned Thursday at the U.S. District Court in Richland, Washington.
"Fraudulent investment schemes are not new, but cryptocurrency scams are a new way fraudsters take money from hardworking, honest people," said U.S. Attorney Vanessa Waldref said. "Cryptocurrency fraudsters often quickly route funds to international accounts, which presents new challenges for law enforcement attempting to recover lost funds. My office and our partners at the FBI are committed to doing all we can to recover the proceeds of these frauds for victims and to hold the people running these scams accountable."
Pinillo, who now lives in Miami, could face 20 years in prison on fraud charges.
