Published on:

Former CEO of a Texas-based investment firm indicted on multiple counts of fraud

A former CEO of a major financial firm was recently charged with several counts of white collar crimes that included wire fraud, securities fraud and money laundering.

As of February 28, the former Chief Executive Officer of a notable firm situated in Austin, TX was scheduled to be arraigned in a federal district court to hear his multiple charges. A New York Criminal Layer notes that the man is alleged to have fraudulently raised $50 million from investors in a malicious and manipulative scheme that involved money laundering, wire fraud and securities fraud. The allegations go into greater detail by describing the fact that the defendant manipulated contacts from church as well as former NFL football stars to cultivate this scheme, which had the personal enrichment of the defendant as its primary motivating factor.

The Austin-based firm, which specializes in investments, was placed in receivership in 2009 by the judge presiding over the case in its initial development. This event was a result of the sobering fact that the U.S. Securities and Exchange Commission (SEC) took action against the firm by way of a securities lawsuit. Though the defendant and former CEO of the firm is facing a major indictment of 39 counts, A Brooklyn Criminal Lawyer explained that is has not yet been revealed what the outcome of the indictment was. What is known is that, according to authorities, the man did not act merely on his own behalf. It appears that his investment manipulation also benefitted the Chief Financial Officer of the Austin-based firm, who is not named.

These charges against the former CEO are quite serious and have no doubt devastated the lives of many investors. The significant amount of $50 million that was fraudulently raised from the deceived investors was described by an observer as “…an expanding Ponzi scheme”, implying that the defendant had no intention of backing down from the aggressive deception. What is disturbing is that the demographics of those cheated in this fraudulent scam consisted of former NFL stars and “church contacts”— people who are generally known for non-profit volunteering and service to the community in tangible ways.

This multiple-count indictment involving extremely serious financial charges will result in major severance being charged to those involved. If you or a loved one finds yourself in in legal trouble, whether it involves sex crimes, a theft charge, or drug possession, it is important to ensure that your rights are protected and that you seek legal guidance as soon as possible.

Contact Stephen Bilkis and Associates for advice and a free consultation. We have offices to serve you throughout the New York area, including offices in Manhattan, the Bronx, Brooklyn, Staten Island and Queens. On Long Island, we have locations in Nassau County and Suffolk County. We also have locations in Westchester County. Call us today at 1-800-NY-NY-LAW.

Contact Information