Former FBI Agent In Court On Ponzi Charges Hot
Former agent John Robert Graves of Fredericksburg, Virginia and his wife, Sara Turberville Graves, are charged with fraud and violations of the IA Act.
Specifically, investigators from the Department of Justice and the Financial Fraud Enforcement Task Force say Graves bilked clients out of $1.3 million.
Graves resigned from the FBI in 1999 before starting the firm in 2002. At some point in the last three years, he and his wife appear to have gotten the urge to start a Ponzi scheme.
Court filings indicate that they make false claims about the investment products on their platform -- "low risk, high return" -- and then kept the money for themselves.
They bought into a time share, paid their credit card bills, and kept some of the proceeds floating around the firm to satisfy clients who wanted their money back.
If convicted on all counts, Mr. Graves could be sentenced to up to 140 years in jail. His wife, not a registered advisor, could face a jail term up to 120 years.
This Website Is For Financial Professionals Only
- Investment Adviser Charged By SEC For Failing To Adopt Proper Cybersecurity Polices And Procedures
- An Open Letter To SEC Chair Mary Jo White: Please Modernize The RIA Testimonial Rule So That Consumers Could Rely On The Web To Connect Them With The Best Advisors
- RIA Brochure Delivery Rule: Do I Really Have To Deliver This "Thing" To Clients If I Made No Material Changes Since Last Year?
- Securities Lawyers Investigate Losses In UBS Willow Fund