Los Angeles County District Attorney Nathan J. Hochman announced last week the arrest of the operator and employee of a financial services company in Bellflower for allegedly stealing more than $1 million from 30 victims through a fraudulent cryptocurrency investment scheme.
The scheme’s victims were low-income, primarily Spanish-speaking community members who sought loans and high-limit credit lines.
“My office will not tolerate financial predators who purport to offer legitimate services, but instead offer lies and devastating financial loss,” said Hochman. “Let me be clear: If you steal from our communities, whether in the streets or through sophisticated investment or cryptocurrency schemes, we will find you and hold you accountable to the fullest extent of the law.”
Yone Lopez Rios, 53, of Rancho Cucamonga and Erwing Diaz Cuevas, 35 (dob 10/9/89) of Norwalk are each charged with 30 felony counts of grand theft. Rios is additionally charged with one felony count of forgery relating to an item exceeding $950 in value and one felony count of passing a non-sufficient funds check exceeding $950.
Between September 2020 and December 2022, the defendants allegedly operated a fraudulent investment scheme under the guise of a cryptocurrency mining business known as Zukre Platform Corporation. Although Zukre claimed to install, maintain and operate computing equipment to mine cryptocurrency, the company conducted no such operations and was not a registered business in California.
The defendants allegedly recruited victims through their financial services business, Fuego Tax, also known as Supremo Tax, in Bellflower. Victims visited Fuego Tax to obtain assistance applying for high-limit credit cards and loans. Often, the victims were urged to use the loans or credit that Fuego Tax had assisted them in applying for to pay into the scheme.
Defendants allegedly represented that the investments were risk-free, guaranteed and protected by insurance. Victims were provided with written contracts and were instructed to download a Zukre-branded mobile application, which purported to show ongoing profits from their investments.
Individual investments ranged from approximately $4,500 to $280,000. Despite repeated attempts, none of the victims received any returns or were able to recover their principal investments.
If convicted as charged, Rios faces a maximum sentence of 23 years and eight months in state prison, and Cuevas faces a maximum sentence of 21 years and four months.
Individuals who believe they may also be a victim of this scheme are encouraged to contact LADA’s Economic and Labor Justice Unit’s hotline at 213-257-2461.
