Litigation Releases (Francisco Javier Sarabia)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26633 / September 8, 2026

Securities and Exchange Commission v. Francisco Javier Sarabia, No. 26-civ-02542 (C.D. Cal. filed Sept. 8, 2026)

SEC Files Settled Action as to President of Purported Hedge Fund in Alleged Multimillion Dollar Ponzi Scheme Targeting Spanish-Speaking and Filipino Investors

On September 8, 2026, the Securities and Exchange Commission filed settled charges against Tustin, California resident Francisco Javier Sarabia, the President and Co-founder of Bonanza Global Solutions Limited Liability Company, alleging that Sarabia raised more than $5 million dollars from more than 350 investors through fraudulent representations about Bonanza Global's investment fund.

According to the SEC's complaint, from approximately February 2022 through March 2023, Sarabia, along with his business partner, targeted Spanish-speaking and Filipino investors by falsely promising returns of 10% to 15% or more per month. The complaint alleges that Sarabia and his business partner claimed that Bonanza Global was a "hedge fund" and that investor funds would be used for stock market trading and other investments. The complaint further alleges that Sarabia misled investors by making false claims about how Bonanza Global would use investor funds, and by promising investors a "money-back guarantee." In reality, the SEC's complaint alleges that Bonanza Global was a fraud and did not produce any revenue. Further, Sarabia allegedly used investor funds to purchase luxury items and travel, as well as to make payments to earlier investors in a Ponzi-like fashion.

The SEC's complaint, filed in U.S. District Court for the Central District of California, charges Sarabia with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and the registration provisions of Sections 5(a) and 5(c) of the Securities Act. Sarabia consented to the entry of a final judgment, subject to court approval, which would permanently enjoin him from violating the charged provisions of the federal securities laws. The final judgment, if approved, also would impose a conduct-based injunction prohibiting Sarabia from participating in securities offerings and order him to pay disgorgement of $825,000 plus prejudgment interest of $215,137.

The SEC's investigation was conducted by Teri Melson and Maria Rodriguez and supervised by Finola H. Manvelian of the SEC's Los Angeles Regional Office. The SEC's litigation will be led by Ruth Pinkel under the supervision of Stephen Kam. The SEC appreciates the assistance of the U.S. Attorney's Office for the Central District of California and the FBI.