A pastor in Colorado who's accused of stealing $1.3 million through a cryptocurrency fraud scheme claimed that God told him to do it.
The Colorado Division of Securities released a statement last week saying Eli Regalado and his wife promoted their cryptocurrency company, INDXcoin, to Christian groups in Denver while telling them the Lord told him his followers would become rich if they invested in his scheme.
The Securities Division stated that Regalado and his wife raised nearly $3.2 million through INDXcoin, and at least $1.3M went to the couple or was "used for their own personal benefit," according to a complaint filed Tuesday in Denver County District Court.
The two were charged with violating anti-fraud provisions under the Colorado Securities Act and are scheduled to appear in Denver District Court next week. In a video statement released to his congregation last week, Regalado said the allegations levied against them that they stole $1.3 million "are true."
"Out of the $1.3 [million], half a million dollars went to the IRS, and a few hundred thousand dollars went to a home remodel the Lord told us to do," Regalado said in the video.
The couple allegedly spent the money on a Range Rover, luxury bags, jewelry, trips and so much more.
Colorado Securities Commissioner Tung Chan said she filed the civil fraud charges after those who invested and lost money through INDXcoin spoke to her about what was going on.
"We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies," Chan said in a statement.
