Former President and CEO of Morgan Peabody, David Williams, recently pleaded guilty to wire fraud and tax evasion charges for his role in a nearly $4 million investment scheme involving about 60 investors.
David Williams, the former president and CEO of California-based Morgan Peabody, Inc., recently pleaded guilty to three counts of wire fraud and two counts of tax evasion. From about June 2007 to April 2008, Williams admitted to running a real estate investment scheme that ultimately caused nearly $4 million in investor losses. At the time, Williams was a licensed stock broker.
In a plea agreement, Williams admitted to instructing about 60 people to invest in a securities fund that was created and managed by Williams – Sherwood Secured Investment Fund. Williams claimed that the fund would yield an annual nine percent return.
Without his investors’ knowledge or consent, Williams used most of his customers’ money for his own personal expenses, including his lease on a $6 million home. To conceal his scheme, Williams also failed to file tax returns with the IRS. He is scheduled for sentencing this September.
Investment scams like Williams’ can be difficult to detect. If you’ve invested your money and you notice one or more of the following red flags, we invite you to contact Meyer Wilson.
Common Investment Red Flags –
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