According to a recent article in the Charleston Regional Business Journal, 48-year-old Timothy D. Mays, of Summerville, has been indicted on federal investment fraud charges, including mail fraud and wire fraud. The indictment was filed in Charleston on Tuesday, January 8.
Mays is accused of running an investment scam that supposedly promised a guaranteed rate of return on certificates of deposit, and he allegedly targeted senior investors in some of his investment ads with tempting bonuses for converting their retirement accounts. According to the accusations against him, Mays allegedly took in over $1 million from investors but only invested a fraction of that amount. Instead, Mays allegedly used investors’ cash to keep up the appearance of legitimacy and for his own personal and luxury expenses.
Of the more than $1 million taken in by Mays, $200,000 is believed to have gone into investments, and approximately $203,000 went toward keeping up the appearance of legitimacy after investors started to complain. It has been alleged that the remaining $686,477 in investors’ cash was used personally by Mays, and his expenditures allegedly included medical bills, child support, vacations, a car, and other day-to-day expenses.
Unfortunately, stories like this are not so uncommon. If you believe you have become the victim of investment fraud, stockbroker misconduct, or a Ponzi scheme, reach out to the experienced investment fraud lawyers with Meyer Wilson.