Pastor's Father Charged With Fraud in Cryptocurrency Scam

In an unexpected turn in the investigation into a $3.4 million cryptocurrency scam that leveraged religious faith for financial gain, the Colorado Division of Securities has expanded its civil fraud investigation to include Pastor Eli Regalado's father, Eligio P. Regalado Sr.

Regalado Jr., a Denver pastor, found himself at the center of a legal battle last month after civil fraud charges related to a cryptocurrency scheme, INDXcoin, that he and his wife, Kaitlyn, marketed to their Christian community.

The amended complaint filed by the Colorado Division of Securities on Thursday of last week highlights 12 new defendants, including Regalado's father who is accused of violating the anti-fraud, licensing and registration provisions of the Colorado Securities Act, further intertwining the case in family ties and religious exploitation.

With allegations of unlicensed securities sales and deceptive promises of exponential investment growth, the expanding legal action deepens the investigation into a scheme that preys on the Christian community.

Newsweek He stressed that despite the intensification of civil investigations, no criminal charges have been brought so far.

Allegations

The investigation into a $3.4 million cryptocurrency scam, organized under the guise of religious belief, has expanded its scope with the Colorado Division of Securities amending its complaint to include 12 additional defendants.

The amendment indicates the involvement of Regalado Sr. and other family members, which demonstrates the family's involvement in the scheme. The allegations against Regalado Sr. mirror those against his son, asserting that he misled investors with promises of significant returns on investments in INDXcoin that never materialized. These actions, along with the actions of the other defendants, are said to have violated the anti-fraud, licensing and registration procedures set forth under the Colorado Securities Act.

The complaint alleges that between January 2022 and July 2023, individuals Regalado Sr., Daniel Applegate (ex-brother-in-law of Eli Regalado, Jr.), and Jesse Buccholz (ex-brother-in-law of Eli Regalado, Jr.) acted without a license. ), Nathaniel Enos, Eternal Truths, Erin Giles, Jesse Duplantis, Eric Skeldon, Tree Vision Global, Black Tribe, Johnny Daughtry and Sherry Erbaugh helped bring $3.4 million in outside investment into INDXCoin which was later deemed worthless while misleading investors into believing so. Cryptocurrency investment will grow with more than $412,975 earned in commissions benefited by new defendants.

“We allege that Mr. Regalado promoted a worthless cryptocurrency to enrich himself at the expense of his Christian communities, and his father and several other people were involved,” Colorado Securities Commissioner Tong Chan said in a statement shared with Reuters. Newsweek.

The Colorado Department of Securities alleges that Regalado Sr received $25,000 in kickbacks for bringing new investments to INDXCoin. The state said Bucholtz received more than $27,000, while $15,500 went to Applegate.

the background

The couple allegedly sold millions in the scheme, promising divine financial returns to the religious community. They are accused of raising approximately $3.4 million through INDXcoin which ultimately left approximately 300 investors with worthless coins.

Despite the civil charges filed, Eli continued to promote financial prosperity and cryptocurrencies in Zambia, Africa, after missing a crucial court hearing in Colorado. The lawsuit alleges that the Regalados embezzled more than $1.3 million for personal expenses, which Eli confirmed in a widely circulated video.

The Colorado Division of Securities said the pair's lack of experience with cryptocurrencies led to the creation of flawed INDXcoin, which contributed to the collapse of the scheme. As previously reported, though, no criminal charges have been filed, the Colorado District Attorney's Office said Newsweek She added that she is “currently investigating this case,” noting that “it is everything [they] “I can tell at this time.”