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 from investors by transferring the funds to another company that he controlled; he then allegedly used the money to pay for personal and business expenses unrelated to Gold Hawgs,” the SEC’s complaint said. 

Office Guru Franchise Group Inc., another company controlled by Garcia, is named as a relief defendant in the complaint, filed this week in U.S. District Court in Denver. 

The SEC is seeking a permanent injunction, disgorgement of all ill-gotten gains plus prejudgment interest and a civil penalty.