Church leader in Denver compelled to refund $3.39 million for deceiving over 600 congregation members
In a significant development, Pastor Eligio "Eli" Regalado Jr. and his wife Kaitlyn are facing a civil fraud lawsuit filed by the U.S. Department of Justice in January 2024. The lawsuit, which seeks dismissal regarding Fenwick & West's role in the case, centres around investments sold by the Regalados.
The Regalados, who had no other source of income during the period in question, promoted trading on the Kingdom Wealth Exchange. Unfortunately, the exchange collapsed just one day after its launch.
The Regalados are also accused of failing to disclose a report to investors about INDXcoin, a cryptocurrency they were selling. The court's latest decision found that the Denver pastor and his wife fraudulently marketed and sold these investments.
According to the court's summary judgment, the investments sold by the Regalados qualified as securities under the Colorado Securities Act. This decision resolves all remaining issues in the civil case brought forward by Commissioner Tung Chan.
The Regalados are alleged to have diverted investor funds to sustain a lavish lifestyle. They are said to have spent money on jewelry, designer clothing, dental procedures, luxury vacations, and a Range Rover. Commissioner Chan described the Regalados as "21st century false prophets who leveraged cryptocurrencies to run an old-fashioned scam."
INDXcoin was marketed as a low-risk, high-return opportunity. However, the court's ruling serves as a reminder to investors to thoroughly research any investment before committing funds. This case underscores the importance of transparency and honesty in the investment industry.
