Paolo Roberto Flores, 39, has pleaded guilty to defrauding investors of over $4.7 million through a deceptive cryptocurrency investment scheme. Prosecutors in the Southern District of California announced Flores’s admission to obtaining funds under false pretenses, providing misleading information on profits, and falsifying mortgage application documents.
According to the plea agreement, Flores falsely assured investors of profitable returns on their cryptocurrency investments and claimed to have protective risk mitigation measures. Despite these promises, Flores’s trading faced consistent losses, yet he continued to send fabricated screenshots of account balances and profits, even prompting some investors to increase their investments. One notable incident included Flores doctoring a screenshot on July 8, 2022, displaying an account balance of 69.06 BTC (equivalent to $1.5 million) when, in reality, the balance was minimal.
Court records show Flores received amounts ranging from $50,000 to $1.6 million from at least 15 investors, which he used for personal purchases, including a 2021 Tesla Model S and a 2022 Land Rover RR. In July 2023, he further attempted mortgage fraud by submitting false income documents to secure a loan.
“Those who defraud others for personal gain will be held accountable,” said U.S. Attorney Tara McGrath, encouraging scam victims to report such cases to law enforcement.
Flores’s sentencing is set for January 23, 2025, where he faces potential prison time and restitution for his fraudulent activities.