EL PASO, TX – Abner Alejandro Tinoco and his company, Kikit & Mess Investments, LLC, are facing over $31 million in penalties and restitution following a CFTC enforcement action, revealed in a court order issued July 9th by the U.S. District Court for the Western District of Texas. The order demands the pair, formerly of El Paso, jointly pay $6,203,792.18 in restitution to the 199 victims they defrauded.
In addition to restitution, Tinoco and Kikit & Mess must also pay $6,257,904.89 in disgorgement – with credit given for any restitution already paid – and a civil monetary penalty of $18,773,714, which is three times the amount of their unlawful gains. The CFTC initially filed its complaint against Tinoco and Kikit & Mess on September 28, 2021, alleging a fraudulent scheme involving foreign currency (forex) and cryptocurrency.
The scheme, which began in September 2020, involved accepting over $7.2 million in investment funds from clients. Rather than investing the funds as promised, Tinoco and Kikit & Mess allegedly used the money to fund a lavish lifestyle, including chartering a private jet, purchasing a luxury mansion and other real estate, and acquiring luxury automobiles. The operation functioned similarly to a Ponzi scheme, with “investment profits” paid to some clients sourced from new investor funds.
An initial consent order issued in March 2022 permanently banned Tinoco and Kikit & Mess from trading in CFTC-regulated markets and registering with the agency. This latest order resolves the CFTC’s original enforcement action.
This case is compounded by parallel criminal charges. In November 2022, the Department of Justice charged Tinoco with five counts of wire fraud. He pleaded guilty in February and was sentenced to 84 months in prison, followed by three years of supervised release. He was also ordered to pay $9,023,695.77 in criminal restitution. Tinoco is currently incarcerated at the Federal Correctional Institution in Safford, Arizona.
The CFTC acknowledged the assistance of receiver Kelly Crawford of Scheef & Stone, L.L.P., in the case.
Source: CFTC.gov
Related Federal Cases
- Alan Leschyshyn Sentenced to 235 Months for $23M Fraud Scheme, Hous… · New Mexico
- Steven Dale Audette, Extortion Scheme, AZ 2024 · Washington
- Alejandro Gurany, Visa Fraud Scheme, TX 2023 · New Mexico
- Arizona Rep. Pleads Guilty to $49,750 Bribe, Mail Fraud Scheme · Washington
- Stephanie Hockridge, PPP Wire Fraud, Texas 2023 · Arizona
