Investment Adviser Accused of Scamming Pro Athletes and Church Members Admits to Securities Fraud
Richard Wyatt Davis Jr., a North Carolina-based investment adviser,has pleaded guilty to tax evasion and securities fraud charges. Davis was indicted for securities fraud, wire fraud, and tax evasion in 2017. He initially pleaded not guilty.
According to the criminal indictment, Davis used investor funds to repay other investors in Ponzi-like fashion, as well as to pay for vacation homes, a personal chef, and other lavish expenses. Investors were solicited at events attended for people who distrusted the banking system and the stock market.
Documents contend that Davis made misrepresentations to more than six dozen investors, costing them about $12.8M as a result. Among his victims were people he knew from church, as well as professional athletes. Of the money that Davis solicited, he paid back investors about $3.5M.
As part of the plea deal, Davis could serve up to 20 years behind bars and have to pay an up to $5M fine for the securities fraud charges. He could face up to five years in prison and be ordered to pay $250K for tax evasion.
In 2016, the US Securities and Exchange Commission filed a parallel civil case against Davis.
Hedge Fund Manager Faces Up to 20 Years for Investment Fraud
Investment Advisory firm owner Yasuna Murakami has pleaded guilty to wire fraud. The hedge fund manager operated MC2 Canada Management LLC and MC2 Capital Management LLC and he had set up three hedge funds.
Prosecutors accused Murakami of bilking investors of millions of dollars and using newer investors’ funds to issue Ponzi-like payments to earlier investors. He also is accused of creating tax documents and account statements that were falsified to make it appear to investors as if their investments were safe.
Attorney Accused of Defrauding Investors is Ordered to$8M
The US Securities and Exchange Commission said that attorney David B. Kaplan and three of his entities will pay more than $7.1M of disgorgement, $670K of prejudgment interest, and a $300K penalty to resolve fraud charges accusing them of raising about $15.8M from 26 investors in numerous states. The regulator announced the entry of a final judgment in the matter this week.
According to the regulator’s complaint, brought in 2016, Kaplan lied to potential investors on numerous occasion by claiming that their money would go into a private off-shore trading program that was low-risky but would generate 10% in profits every month. Instead, claims the Commission, Kaplan misappropriated investors’ money, sent them fake profit statements to make it appear as if they were earning returns, and took part in other fraudulent and deceitful behaviors. The SEC accused Kaplan of acting in the role of unregistered broker.
North Carolina Advisor Pleads Guilty To Defrauding Professional Athletes, Insurance News Net, January 8, 2018
Massachusetts hedge fund manager pleads guilty to fraud, Reuters/Investing.com, January 9, 2018
More Blog Posts:
Texas Securities Regulator Orders BitConnect To Stop Allegedly Fraudulent Sales of Unregistered Bitcoin Investments, Stockbroker Fraud Blog, January 4, 2018
Royal Bank of Scotland Settles Mortgage-Backed Securities Fraud Case Brought by Pension Funds for $125M, Institutional Investor Securities Blog, December 29, 2017
Houston Technology Company is Accused of $28M Texas Securities Fraud, Stockbroker Fraud Blog, December 26, 2017