Introduction
In a shocking revelation, a local pastor and his wife have been implicated in a cryptocurrency fraud that has left many in their community feeling betrayed. This article delves into the accusations, the statements made by the accused, and the broader impact of their actions.
Accusations Against Eli Regalado and His Wife
Coloradan pastor Eli Regalado and his wife are facing accusations of marketing a near-worthless cryptocurrency, INDXcoin, to their followers and misappropriating the funds for personal use. The scheme successfully raised approximately $3.2 million, with at least $1.3 million of that amount being diverted for the couple’s personal benefits.
Regalado’s Statement and Charges
Admission of Guilt
Eli Regalado has openly admitted to the charges against him, acknowledging that the allegations of misappropriating $1.3 million are true.
Misuse of Funds
He justified his actions by claiming that divine instruction guided him, stating that half a million dollars of the funds were paid to the IRS and a few hundred thousand were used for a home remodel, which he says the Lord instructed them to do. The money was also reportedly spent on:
- A Range Rover
- Luxury goods
- An au pair
- Boat rentals
- Jewelry
The Colorado Securities Commissioner has brought several charges against Eli Regalado, his wife, and their companies, including securities fraud, unlicensed broker-dealer activity, selling unregistered securities, and imposition of constructive trust.
Marketing Tactics and Community Impact
Eli Regalado employed marketing tactics that heavily referenced religion and promises of wealth to promote INDXcoin. He claimed that the cryptocurrency was a divine wealth transfer to his followers and spun tales about how investing in the scheme would support noble causes such as helping widows and orphans, although there is no evidence to support these claims.
The impact of this scheme on the Christian community has been significant, with many placing their trust and faith in Regalado’s words. Colorado Securities Commissioner Tung Chan expressed that it was particularly disheartening to see Regalado exploit the trust of his own community, using scripture and faith to persuade them to invest in what turned out to be essentially worthless cryptocurrencies.
Upcoming Court Appearance and Legal Violations
Eli Regalado, his wife, and their companies are scheduled to appear in court next week to face charges related to their cryptocurrency scheme. They are accused of multiple legal violations, which are summarized below:
- Securities Fraud: Deception of investors and manipulation of financial markets
- Unlicensed Broker-Dealer Activity: Engaging in the business of trading securities without proper licensure
- Selling Unregistered Securities: Offering securities to the public without registering them with financial authorities
- Imposition of Constructive Trust: A remedy imposed by a court whereby a party is deemed to hold the assets for the benefit of others
