Church leader in Denver compelled to return $3.39 million, accused of swindling over 600 congregation members.
In a surprising turn of events, the Denver District Court has issued a summary judgment siding with Colorado Securities Commissioner Tung Chan, finding Pastor Eli Regalado and his wife Kaitlyn guilty of securities fraud related to the INDXcoin project in Los Angeles.
The court's decision, announced in April 2025, follows a civil lawsuit filed by Commissioner Chan against the Regalados in January 2024. The lawsuit alleged that the couple fraudulently marketed and sold investments in the INDXcoin project, which collapsed just one day after its launch.
The court's decision also found that the Regalados' investments qualified as securities under the Colorado Securities Act. A crucial point of contention was the fact that the Regalados failed to disclose a report about INDXcoin to investors, a practice that the court deemed as misleading and deceptive.
The Regalados are accused of diverting investor funds to sustain a lavish lifestyle, spending the money on jewelry, designer clothing, dental procedures, luxury ski and yachting vacations, and the purchase of a Range Rover. These allegations suggest that the couple used the funds raised from the INDXcoin project not for its intended purpose, but to fuel their extravagant spending.
Investors were lured into the INDXcoin project with promises of a low-risk, high-return opportunity. The Regalados promoted trading on their own platform, the Kingdom Wealth Exchange, leading many to believe that their investments were safe and secure. However, the court's decision has now exposed the truth behind these promises.
Interestingly, the Regalados allegedly had no other source of income during the period in question, further fuelling suspicions about the source of their lavish lifestyle.
This case serves as a reminder for investors to exercise caution when investing in new projects and to thoroughly research the individuals and companies involved. It also underscores the importance of transparency and honesty in the investment process. The court's decision sends a clear message that such fraudulent activities will not be tolerated.
