SEC files suit against brother of bitcoin mining company GAW Miners CEO

It seems the legal troubles for GAW Miners, the now-defunct cryptocurrency mining company, are not going to end anytime soon. The US Securities and Exchange Commission (SEC) has recently filed a suit against its former employee, Carlos Garza.

According to a 14th August filing, Carlos Garza, the brother of GAW CEO Josh Garza, allegedly refused to comply with a SEC subpoena with regard to its investigation into GAW Miners. The SEC is investigating possible fraud in connection with GAW Miners' sale of securities, as well as potential violations of the securities registration requirements and the broker registration requirements. It is also investigating whether the company operated a Ponzi scheme.

The filing notes:
"The Commission subpoenaed Garza to testify on Wednesday, August 12, 2015. Garza appeared for testimony but refused to answer any questions. Garza also failed to produce any documents requested in the subpoena, including a document he had earlier represented that he would produce."

The filing further states that investigators want to question him because of his knowledge about how GAW Miners received and transferred bitcoin and other virtual currencies, as well as GAW Miners' recordkeeping relating to those bitcoin transfers. He was sent an initial query letter on 30th July.

The Commission requested the Court to issue: (1) an Order to Show Cause why Respondent should not comply with the administrative subpoena; and (2) an Order compelling Respondent to appear for testimony in the Commission's Boston Regional Office and further to provide testimony or assert a specific, valid legal right or privilege not to do so.

The court granted the SEC its request on 17th August.