Luiz Capuci Jr., facing accusations of running the Mining Capital Coin Ponzi scheme, is pushing back against the U.S. Securities and Exchange Commission’s attempts to serve him legal documents in Brazil. He fled to his home country after learning of investigations, banking on Brazil’s policy against extraditing its citizens.

Capuci’s strategy to evade American justice appears to be faltering. While the Department of Justice’s criminal case against him is stalled, with Capuci remaining a fugitive, the SEC is actively pursuing its civil case. The SEC is employing alternative service methods, a move that has visibly agitated Capuci.

In a filing on September 27th, Capuci’s legal team, Wellman and Warren, LLP, signaled their intent to raise foreign law issues, specifically citing the laws of the Federal Republic of Brazil. This indicates a direct challenge to the SEC’s proposed service methods.

The SEC had filed a motion on August 26th requesting permission to serve Capuci and his associate, Emerson Pires. Their primary proposal involved the Hague Convention, a treaty governing international judicial assistance. However, acknowledging the potentially lengthy process, the SEC also sought permission to serve Capuci via email, specifically to his U.S.-based attorneys.

Capuci’s legal response asserts that Brazil’s legal framework prohibits email service on individuals within its borders. He argues that the SEC should be barred from using email service, framing it as a tactic to delay proceedings.

The SEC acknowledges that the Hague Convention applies and that it can be used for service. Their justification for seeking an alternative method rests on the estimated eight to twelve months the Convention might take to complete service. Capuci’s team counters that this timeline is not a valid reason to bypass the Convention’s established procedures.

Furthermore, Capuci contends that allowing the SEC’s motion for alternative service could jeopardize his pending appeal against the injunction related to Mining Capital Coin.

The SEC has until October 4th to file a response to Capuci’s opposition.

Separately, Capuci has also responded to allegations of attempting to sell frozen assets. After the SEC discovered properties linked to Capuci listed for sale, they filed a motion to hold him in contempt.

Capuci’s September 27th response denies the SEC’s claims, stating no evidence has been presented to support the assertion that he disposed of assets covered by the preliminary injunction. He argues the SEC has failed to provide a single instance of a property being transferred or sold to a third party, and on this basis alone, the SEC’s motion should be dismissed.