'Money-Back Guarantee' and 10% to 15% a Month: Bonanza Global President Settles SEC Ponzi Case Targeting Spanish-Speaking and Filipino Investors

Published Oct. 12, 2026. Case statuses are current as of that date. This article is based only on documents published by the U.S. Securities and Exchange Commission.

Bonanza Global Solutions called itself a hedge fund and a private equity firm. On its websites and in YouTube videos, it promised returns of 10% to 15% or more per month and a "money-back guarantee." According to the Securities and Exchange Commission, the company never produced any revenue at all.

On Sept. 8, 2026, the SEC filed a settled civil action against Francisco Javier Sarabia, 60, of Tustin, California, the president and co-founder of Bonanza Global Solutions LLC. The SEC alleges Sarabia and a business partner raised more than $5 million from more than 350 investors between about February 2022 and March 2023, targeting Spanish-speaking and Filipino investors [1][2]. The complaint says Sarabia is also known as Jose Luis Perez-Garate [2].

Important: Sarabia agreed to settle without admitting or denying the allegations, and the proposed judgment requires court approval. The SEC's release names only Sarabia as a defendant and refers to his "business partner" without naming that person, so we do not name the partner either.

The pitch

According to the SEC complaint [2], Bonanza Global's websites and YouTube videos said the company would "use pooled funds and employ different strategies, to earn attractive returns for their investor." Investors were told their money would go into stock market trading, forex (foreign currency) trading, petroleum oil and other investments.

The complaint describes a fast, paperwork-light process. Within 24 to 72 hours of expressing interest, investors were told, they would receive a promissory note by email to sign and return. The notes listed the amount invested, the promised return of 10% to 15% per month and the date the return would be paid. Investors then deposited or wired money into Bonanza Global bank accounts [2].

The websites featured Sarabia's photo and biography and identified him as "President/Co-founder," and in a YouTube video he described himself as "the President [and] Founder of Bonanza Global Solutions," according to the complaint [2].

To put the promise in perspective: 10% a month, compounded, works out to more than 200% a year. No legitimate investment can guarantee anything close to that.

What the SEC says really happened

The SEC alleges Bonanza Global "was a fraud" and had no discernible source of income; virtually all of its money came from investors [2]. According to the complaint and release [1][2]:

• Investor money was not used to trade securities or for any of the purposes investors were told.
• Sarabia allegedly used investor funds at luxury retailers including Gucci, Dolce & Gabbana and Versace, on trips to Las Vegas to gamble, at high-end hotels and at bars, nightclubs and restaurants.
• Investor funds were allegedly used to pay promoters who brought in new investors and to make Ponzi-like payments to earlier investors.
• By March 2023, the complaint says, Bonanza Global had run out of money.

The SEC also alleges the notes were sold in an unregistered offering, in violation of the registration provisions of the Securities Act [1].

The settlement

Sarabia consented to a final judgment, subject to court approval, that would [1]:

• permanently bar him from violating the antifraud and registration provisions charged;
• impose a conduct-based injunction prohibiting him from participating in securities offerings; and
• order him to pay $825,000 in disgorgement plus $215,137 in prejudgment interest.

The case is SEC v. Francisco Javier Sarabia, No. 26-civ-02542, U.S. District Court for the Central District of California. The SEC thanked the U.S. Attorney's Office for the Central District of California and the FBI for their assistance; its release does not say whether criminal charges have been filed [1].

What "settled, subject to court approval" means

This is a civil case brought by the Securities and Exchange Commission, not a criminal prosecution. The SEC cannot send anyone to prison; it asks a federal judge for orders such as injunctions, repayment of allegedly ill-gotten gains (called disgorgement), interest on that money, civil penalties and industry bars.

In a settled action, the defendant agrees to a proposed judgment without admitting or denying the SEC's allegations. That is not a finding of liability by a court, and it is not a criminal conviction. A proposed judgment also does not take effect until a judge signs it. As of Oct. 12, 2026, we have not confirmed whether the court has entered the judgment described below. If it has, we will update this article.

Red flags to watch for

• Monthly returns of 10% or more. That is more than 200% a year compounded.
• "Money-back guarantees" on investments.
• A "hedge fund" you can join by signing a note emailed within days. Real private funds require detailed offering documents and investor-eligibility checks.
• YouTube and social-media pitches aimed at one language or ethnic community.
• Paying friends to recruit new investors.

What to do if you invested

1. Keep every record: account statements, promissory notes, subscription agreements, emails, texts, wire confirmations and screenshots of websites or videos.
2. Report it to the SEC at sec.gov/tcr.
3. Check who you are dealing with. Before investing, search the person and firm on the SEC's Investor.gov adviser search and FINRA's BrokerCheck.
4. Beware of "recovery" offers. People who lost money in investment frauds are often contacted by scammers who promise to recover it for an upfront fee. Government agencies and court-appointed receivers do not charge victims to file claims.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status as of Oct. 12, 2026	Source
Francisco Javier Sarabia (a/k/a Jose Luis Perez-Garate), 60, Tustin, Calif.	U.S. District Court, C.D. Cal. (No. 26-civ-02542)	Settled SEC civil action filed Sept. 8, 2026, without admitting or denying; proposed judgment ($825,000 disgorgement + $215,137 interest) subject to court approval	[1], [2]

Statuses can change. An SEC complaint contains allegations, and a settlement without admitting or denying them is not a finding of wrongdoing.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26633, "SEC Files Settled Action as to President of Purported Hedge Fund in Alleged Multimillion Dollar Ponzi Scheme Targeting Spanish-Speaking and Filipino Investors," Sept. 8, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26633
2. SEC complaint, SEC v. Francisco Javier Sarabia, No. 26-civ-02542 (C.D. Cal. filed Sept. 8, 2026). https://www.sec.gov/files/litigation/complaints/2026/comp26633.pdf

---

Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, a court ruling on a proposed judgment, or any other change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.