The Securities and Exchange Commission filed settled charges on September 8, 2026 against Tustin, California resident Francisco Javier Sarabia. Regulators accuse the president and co-founder of Bonanza Global LLC of raising more than $5 million from over 350 investors through a purported hedge fund that never produced revenue.
What happened in the Bonanza Global case
According to the SEC, Sarabia and a business partner told investors that Bonanza Global operated a hedge fund. Investor money, they said, would support stock market trading and other investments. The complaint describes a very different operation.
The agency alleges the fund generated no revenue at all. Instead of trading, Sarabia allegedly spent investor money on luxury items and travel and routed funds to earlier investors in Ponzi-style payments. The offering reached Spanish-speaking and Filipino investors in particular, the SEC said.
Key facts from the SEC complaint
| Item | Detail |
|---|---|
| Litigation release | LR-26633, announced September 8, 2026 |
| Court | U.S. District Court, Central District of California |
| Case number | 26-civ-02542 |
| Defendant | Francisco Javier Sarabia, Tustin, California |
| Entity | Bonanza Global LLC |
| Amount raised | More than $5 million |
| Investors | More than 350 |
| Charges | Securities Act Sections 17(a), 5(a), and 5(c); Exchange Act Section 10(b) and Rule 10b-5 |
How the alleged scheme operated
The complaint alleges that Sarabia misled investors about how Bonanza Global would use their funds. He also promised investors they could get their money back, according to the SEC. In reality, the agency claims the operation depended on fresh deposits.
Payments to earlier investors allegedly came from new deposits rather than trading gains. That structure creates the appearance of returns while the underlying business produces nothing.
| Item | What investors were told | What the SEC alleges happened |
|---|---|---|
| Purpose of funds | Stock market trading and other investments | No revenue produced |
| Personal spending | Not disclosed | Luxury items and travel |
| Source of payouts | Trading returns | New investor deposits |
| Withdrawals | Money back on request | Paid only while new money kept arriving |
Red flags common to community-targeted fund fraud
Affinity-style pitches reach investors through trusted community channels, and personal trust often replaces verification. Several warning signs appear again and again in cases like this one.
- Returns tied to vague trading strategies with no audited performance history
- Withdrawal pledges that promise full principal back regardless of market results
- Recruitment concentrated inside a single community or language group
- Pressure to bring in friends and family, which keeps deposits flowing
What affected investors can do now
Anyone who invested with Bonanza Global should gather account statements, wire confirmations, marketing materials, and notes on any verbal promises. The SEC filed its case as a settled action, and the court filings spell out the resolution terms.
SEC civil cases run separately from private claims. A settled enforcement action can establish key facts while individual investors still need their own recovery strategy, whether through arbitration, a class action, or direct negotiation with a receiver distributing recovered assets.
Victims of Ponzi-style schemes can also pursue recovery claims against the people and entities that solicited their money. Assets available for recovery tend to shrink as legal costs pile up, so early action matters.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in investment fraud recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
- website for a free consultation
Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
