A “Money Back Guarantee,” a Beverly Hills Office and $5 Million: The SEC’s Bonanza Global Allegations

The case in brief

• The SEC alleges Francisco Javier Sarabia and a business partner raised more than $5 million from over 350 investors through Bonanza Global promissory notes.
• The notes promised returns of 10% to 15% per month. Promotional claims included an 80% money back guarantee, insurance and a $10 million safety net.
• The complaint says Bonanza Global employed no traders, produced no revenue and did not use investor funds for the investments it promoted.
• The SEC alleges Sarabia personally misappropriated at least $825,000. It attributes approximately $3.5 million in additional misuse to his unnamed business partner.
• Spanish-speaking and Filipino communities were targeted through presentations, social media, conferences and paid referral networks, according to the complaint.
• The allegations have not been proven. The supplied record is the SEC’s complaint, not a judgment or trial verdict.

The central allegation is not simply that an investment failed. It is that the advertised investments and protections did not exist.

The pitch offered three comforts at once: double-digit monthly returns, an 80% refund promise and a claimed $10 million safety net. The SEC says none of those assurances matched what happened inside Bonanza Global’s bank accounts.

From approximately February 2022 through March 2023, investors sent more than $5 million to accounts controlled by Sarabia and his business partner, according to the complaint. Bonanza Global presented itself online as a hedge fund and private equity firm that would trade stocks and foreign currencies, invest in petroleum oil and buy life insurance assets.

The SEC alleges that the company instead had no discernible operating revenue, employed no traders and relied almost entirely on new investor deposits. Money was allegedly diverted to personal spending, promoter commissions and payments to earlier investors in what the agency calls a Ponzi-like pattern.

$5M+ Raised from investors Alleged total during the relevant period

350+ Investors offered or sold notes Across multiple states and outside the United States

10% to 15% Promised return per month Return stated in promissory notes

$825K+ Attributed to Sarabia personally Alleged personal misappropriation

The product was confidence

Bonanza Global did not sell the notes only through private conversations. The complaint describes publicly available websites, YouTube videos, in-person presentations and conferences. Investors were told that they would receive a promissory note identifying the amount invested, a return of between 10% and 15% per month and a payment date.

The sales operation combined formal-looking paperwork with the image of a successful financial institution. Sarabia and his partner rented an office in Beverly Hills, displayed computer screens that purportedly showed profitable trading and emphasized the office’s location in promotional videos. The SEC says the setting led investors to believe the company was legitimate and profitable.

Safety claims were just as important as the promised return. A letter published on the company’s websites offered an “80 percent money back guarantee in writing.” It also promised a full refund following a death in an investor’s immediate family. Other materials allegedly said about half of investor money would be used to buy life settlement policies, creating a $10 million safety net.

The agency alleges there was no insurance, no life settlement investment and no reserve supporting those guarantees. It also says Bonanza Global claimed its securities offering was registered with the SEC when no registration statement had been filed.

How the alleged mechanism worked

The complaint presents a straightforward sequence. Public promotion attracted investors, promissory notes converted the pitch into a transaction, and pooled deposits entered accounts controlled by two signatories. The SEC alleges the money then moved toward uses that were fundamentally different from those advertised.

Sarabia and his business partner were the only people with signatory authority over the primary bank account and other accounts opened under variations of Bonanza Global’s name, the complaint says. Sarabia allegedly signed withdrawal slips, discussed transactions with bank representatives and used a company credit card for personal expenses.

The SEC attributes at least $825,000 in personal misappropriation to Sarabia. The complaint lists luxury purchases at Gucci, Dolce & Gabbana and Versace, gambling trips to Las Vegas, high-end hotels, bars, nightclubs and restaurants. It separately alleges that his business partner misused approximately $3.5 million.

A recruitment network reached specific communities

Much of the solicitation focused on Spanish-speaking investors, according to the SEC. Sarabia and his partner gave Spanish-language presentations at the Beverly Hills office, distributed bilingual brochures and promoted Bonanza Global in social media spaces aimed at Spanish speakers. The company also announced plans for a Mexico City office.

Filipino investors were approached through community promoters, a San Francisco conference attended predominantly by people of Filipino descent and an event in the Philippines. Bonanza Global later claimed it had opened an office in the Bonifacio Global City district.

Recruitment carried direct financial incentives. Promotional materials allegedly promised a 10% commission for bringing in an investor and a second-level commission of 5% when that recruit brought in someone else. The structure gave existing participants a reason to extend the pitch through their own relationships.

The complaint also states that Sarabia and his partner had previously faced criminal charges in an earlier case involving investors. It says they pleaded guilty in July 2014 to multiple violations of California’s grand theft law, received four-year prison sentences and were collectively ordered to pay more than $1 million in restitution. The SEC alleges Sarabia did not disclose that history while presenting himself as an experienced financial professional.

The returns stopped, but the assurances continued

Bonanza Global began having difficulty making promised payments in December 2022, according to the complaint. Investors were told the delays were temporary and that new funds were being obtained. A Spanish-language message promised all returns before the end of that year.

1. February 24, 2022

   Bonanza Global Solutions LLC was formed in California.

2. February 2022 to March 2023

   The company allegedly raised more than $5 million through promissory notes.

3. December 2022

   Payment difficulties emerged. Investors were promised that returns would be paid before year end.

4. March 4, 2023

   Sarabia appeared in an online video stating that no one would lose an investment, according to the complaint.

5. June 2023

   A new payment website promised repayment of principal even though the relevant bank accounts allegedly had a negative balance.

6. September 8, 2026

   The SEC filed its civil complaint against Sarabia in federal court.

After missing the year-end promise, Bonanza Global offered new explanations and another payment date. In June 2023, it created a website called bonanzapayment.com and invited investors to submit proof of what they had deposited. The site said repayment of principal would begin that month.

The SEC says the bank accounts already had a negative balance. It characterizes the payment portal and repeated repayment promises as efforts to conceal the alleged scheme rather than a functioning repayment program.

What the complaint establishes, and what it does not

The SEC filed five civil claims alleging the sale of unregistered securities, material misstatements and a fraudulent scheme under the Securities Act and Exchange Act. It argues that the promissory notes were securities because investors contributed money expecting profits generated entirely by Sarabia and his partner.

Relief requested by the SEC

• Permanent injunctions against future violations of the cited securities laws.
• An order barring Sarabia from participating in securities offerings, while allowing transactions in his own personal accounts.
• Disgorgement of alleged ill-gotten gains plus prejudgment interest.
• A jury trial and any additional relief the court considers appropriate.

Those are requests, not remedies already imposed. The complaint does not contain a ruling that Sarabia committed fraud, an admission from him or a final calculation of investor losses. It also does not provide individual investor accounts, identify the unnamed business partner or state how much each investor recovered, if anything.

The decisive legal question is whether the SEC proves its case. The complaint’s theory, however, is already precise: assurances about returns, insurance, refunds and regulatory legitimacy allegedly moved money from public solicitations into accounts controlled by two people, while the promised investment operation did not exist.

That distinction matters. A risky investment can lose money even when its risks are honestly disclosed. The SEC alleges something different here: that Bonanza Global sold the appearance of protection while investor deposits supplied the business, the payouts and the personal spending.