HEDGE FUND BOSS SCAMS SPANISH SPEAKERS OUT OF $5 MILLION!

SEC v. Francisco Javier Sarabia — U.S. Securities and Exchange Commission Litigation Release No. 26633, dated September 8, 2026.

The SEC charged Francisco Javier Sarabia, president of Bonanza Global, for orchestrating a multi-million dollar Ponzi scheme. Sarabia allegedly defrauded over 350 investors, primarily targeting Spanish-speaking and Filipino communities, by promising high monthly returns. Instead of investing the funds, Sarabia used investor money for luxury purchases and to pay earlier investors.

In Plain English

Imagine someone promising you big money back very quickly from an investment. They claim they'll use your money to make smart trades. But instead, they spend it on fancy things and use new investors' money to pay off old ones, like a fake money chain. That's what happened here, and the SEC stepped in.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. The Promise From February 2022 to March 2023, Francisco Javier Sarabia, through Bonanza Global, promised investors returns of 10% to 15% or more per month. He claimed investor funds would be used for stock market trading and other investments.
2. Targeting Investors Sarabia and his business partner specifically targeted Spanish-speaking and Filipino investors, using websites and YouTube videos to promote Bonanza Global and its investment fund.
3. False Claims Sarabia misled investors with false claims about how their money would be used, the safety of their investments, and even promised a 'money-back guarantee'.
4. The Reality: A Fraud Contrary to promises, Bonanza Global generated no revenue. The primary source of funds was new investors, indicating a Ponzi-like structure.
5. Misappropriation of Funds Instead of investing, Sarabia used investor money to buy luxury items from brands like Gucci and Versace, travel, and gamble in Las Vegas.
6. Ponzi Payments Investor funds were also used to pay promoters who brought in new investors and to make payments to earlier investors, a hallmark of a Ponzi scheme.
7. Scheme Collapse By March 2023, Bonanza Global had run out of money, leaving investors with significant losses due to Sarabia's fraudulent activities.

The Enforcement Action

On September 8, 2026, the SEC filed settled charges against Francisco Javier Sarabia, President and Co-founder of Bonanza Global Solutions LLC, for allegedly operating a Ponzi scheme that defrauded over 350 investors out of more than $5 million. Sarabia consented to a final judgment, subject to court approval, permanently enjoining him from violating antifraud and registration provisions of federal securities laws. The judgment also orders him to pay disgorgement of $825,000 plus $215,137 in prejudgment interest.

Named in this action: Francisco Javier Sarabia.

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