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Securities and Exchange Commission v. Back to Green Mining, LLC, José Jiménez Cruz, and Manuel Portalatin, No. 3:21-cv-01455 (JAG) (D. P.R. filed Sept. 21, 2021)

As of February 23, 2023:

On February 22, 2023, the Securities and Exchange Commission obtained
a final judgment in the U.S. District Court of Puerto Rico against
defendants Back to Green Mining, LLC and José Jiménez Cruz. The SEC
filed its action on September 21, 2021, charging Back to Green Mining
and its two managing members, Jiménez and Manuel Portalatin, with
participating in a fraudulent and unregistered offering in a purported
“green” mining venture. On September 23, 2021, the district court
entered a consent judgment against Portalatin.

The SEC’s complaint
alleged that from August 2016 until at least 2020, Back to Green,
Jiménez, and Portalatin offered and sold to retail investors in Puerto
Rico and at least five U.S. states the opportunity to share in the
profits of a purported Colombian gold mining operation. According to the
complaint, the offering, which was not registered with the Commission,
was part of a fraudulent scheme that raised approximately $2.7 million.
Jiménez and Back to Green allegedly placed advertisements promising
investors exorbitant returns, and each of the defendants presented
investors with materials that falsely stated that all permits necessary
to mine in Colombia had been obtained.

Without admitting or denying the SEC’s allegations, Back to Green and
Jiménez consented to entry of a final judgment: permanently enjoining
each of them from future violations of Sections 17(a), 5(a), and 5(c) of
the Securities Act of 1933, Section 10(b) of the Securities Exchange
Act of 1934, and Exchange Act Rule 10b-5; permanently enjoining Jiménez
from participating in securities offerings not registered with the SEC;
ordering Back to Green and Jiménez to pay, on a joint and several basis,
$1,995,538 in disgorgement, plus prejudgment interest of $410,728; and
ordering Back to Green and Jiménez to pay civil penalties of $1,035,909
and $207,183, respectively.

LINK: https://www.sec.gov/litigation/litreleases/2023/lr25646.htm?utm_medium=email&utm_source=govdelivery

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As of September 21, 2021:




The Securities and Exchange Commission announced charges against Puerto Rico-based Back to Green Mining LLC and its two managing members, José Jiménez Cruz and Manuel Portalatin, for their participation in a fraudulent and unregistered offering in a purported "green" mining venture.




The SEC's complaint alleges that, from August 2016 until at least 2020, Back to Green, Jiménez, and Portalatin offered and sold to retail investors in Puerto Rico and at least five U.S. states the opportunity to share in the profits of a purported Colombian gold mining operation. According to the SEC's complaint, the offering, which was not registered with the Commission, was part of a fraudulent scheme that raised approximately $2.7 million. Jiménez and Back to Green allegedly placed advertisements promising investors exorbitant returns and presented investors with materials that falsely stated that all permits necessary to mine in Colombia had been obtained. Subsequent to the provision of these materials, Portalatin allegedly signed contracts with investors when he knew that they had been misled.




Associate Director of the SEC Enforcement Division. "We have alleged that Back to Green and Jiménez represented to investors that they would receive 40% returns per month, commencing within a few months, when the company was years away from selling anything for profit."




The SEC's complaint, filed in United States District Court for the District of Puerto Rico, charges Back to Green, Jiménez, and Portalatin with violating the antifraud provisions of the federal securities laws, as well as with directly offering and selling securities in an unregistered offering. The SEC seeks permanent injunctions, disgorgement of allegedly ill-gotten gains plus interest, and civil penalties against Back to Green, Jiménez, and Portalatin.




Without admitting or denying the allegations in the SEC's complaint, Portalatin has offered to settle to permanent injunctions from future violations of the charged provisions and from participating in securities offerings not registered with the SEC, and to pay disgorgement of $605,462, plus prejudgment interest thereon in the amount of $64,312.25, and a civil penalty of $160,000. The settlement is subject to the approval of the district court.




For further information, please contact:


SEC Headquarters


100 F Street, NE


Washington, DC 20549


https://www.sec.gov




LINK: https://www.sec.gov/news/press-release/2021-185?utm_medium=email&utm_source=govdelivery