Feds accuse Severance man of running fraudulent crypto scheme

SEVERANCE —  Paul Garcia, a Severance resident, was charged this week by the U.S. Securities and Exchange Commission for allegedly stealing investor money after a cryptocurrency scheme went belly up. 

Garcia is accused of raising $400,000 from 16 investors in mid-2019 for the creation of a new cryptocurrency called Gold Hawgs. 

He allegedly touted the potential for high returns after Gold Hawgs achieved an initial coin offering, which never materialized.

“Instead of using all of the investor funds to develop Gold Hawgs’ business, Garcia, the chief financial officer and a 50% owner of the company, allegedly stole approximately $123,000 of the money raised…