Ex-Virginia Investment Company Owner Arrested in Nearly $20M Fraud

Daryl Gene Bank, who is the owner of dozens of Virginia liability companies, and Raeann Gibson have been arrested in an alleged investment fraud that prosecutors believe cost investors almost $20M. They are charged with mail fraud, wire fraud, conspiracy to commit both, taking part in illegal monetary transactions, and running a number of investment scams between 2012 through July 2017.

WTVR reports that among the allegations against Bank is that he caused a number of material misrepresentations and omissions to be presented to a number of investors, including a blind elderly investor who gave Bank $20K of his retirement money. Bank allegedly placed most of the funds in Prime Spectrum, which is purportedly an investment scam.

If convicted, Bank could be ordered to serve up to 260 years behind bars. Gibson could be sentenced to up to 240 years.

SEC Sued Bank for Over $12M Investor Fraud
Bank was sued by the US Securities and Exchange Commission, along with five other people and 12 companies, in 2015 for his alleged involvement in an over $12.4M investor fraud involving FCC applications for cellular spectrum licenses. In 2016, the State Corporation Commission in Virginia accused Bank and Gibson of bilking investors of at least $21 even though he’d been barred from selling securities for four years.

The state’s SCC claimed that Bank set up a web of companies, which sold investments that were unregistered securities and misappropriated investor funds. Gibson, who was Bank’s COO, was accused of helping him bilk investors. Many of their alleged victims were retirees who thought they were buying shares in different companies.

Bank was a best-selling author and co-host of Daryl & the Bull, a talk show. He offered listeners in numerous states financial advice.

At Shepherd Smith Edwards and Kantas, LTD LLP, we represent investors throughout the US. Please contact us today to request your free case consultation. We also work with elder investors in their families in the wake of losses sustained from senior financial fraud. Your initial session with us is a free, no obligation assessment in which we help you figure out whether you may have grounds for a securities claim.

Former Investment Advisor Arrested for $20 Million Fraud, Justice.gov, August 24, 2017

Read the SEC’s Complaint (PDF)