

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23322 / August 18, 2015 Securities and Exchange Commission v. Carlos R. Garza, Civil Action No. 1:15-MC-91258-RGS (D. Mass., Filed Aug. 14, 2015) SEC Files Subpoena Enforcement Action Against Carlos R. Garza for Failure to Provide Testimony in Investigation of Gaw Miners, LLC The Securities and Exchange Commission announced that on August 14, 2015, it filed a subpoena enforcement action in the U.S. District Court for the District of Massachusetts against Carlos R. Garza ("Garza"). According to the application and supporting papers, the SEC is investigating whether GAW Miners, LLC, and various individuals and entities acting in association with it, have violated the anti-fraud or other provisions of the federal securities laws in connection with GAW Miners' sale of shares in the profits to be derived from its purported bitcoin mining operations and its sales of rights relating to a new type of virtual currency that it created. The SEC's application alleges that Garza was a salesman for GAW Miners, and was knowledgeable about GAW Miners' potential misrepresentations to individuals who purchased shares in GAW Miners' alleged mining operations, and rights in its new virtual currency. The SEC also alleges that Garza has knowledge that may be relevant to locating the bitcoin and other virtual currency that GAW Miners received as payment. As part of its investigation, the staff in the SEC's Boston Regional Office served Garza with a subpoena requiring his testimony in July 2015. After agreeing to several extensions of his testimony date, Garza appeared at the Commission's offices on August 12, 2015, but refused to provide any substantive testimony. The SEC's application sought an order from the federal district court compelling Garza to provide testimony in response to the subpoena. The court endorsed an order granting the SEC's application on August 17, 2015. The SEC is continuing its fact-finding investigation and, to date, has not concluded that anyone has violated the securities laws. http://www.sec.gov/litigation/litreleases/2015/lr23322.htm

Modified: 08/18/2015