Virginia Beach investment adviser and Williamsburg attorney convicted of $ 25 million fraud scheme
A former Virginia Beach investment adviser was sentenced this week to 35 years in prison, following his Williamsburg attorney’s conviction last week to 10 years in prison, for their role in a national fraud scheme. investment that resulted in losses of over $ 25 million for more than 300 victims, most of whom were elderly.
According to court documents, Daryl Bank, 51, of Port St. Lucie, Fla., Conducted an investment fraud scheme from around January 2012 to July 2017, based in the Tidewater area and Port St. Lucie, and operating across the country. Bank and his co-conspirators, including his lawyer, Billy Seabolt, 56, of Williamsburg; corporate executive Raeann Gibson, 49, of Florida; and seller Roger Hudspeth, 52, of Chesapeake – deceived hundreds of unsuspecting investors, most of whom were near retirement age, into fraudulently convincing them to invest in companies owned and controlled by the bank. Under the leadership of the Bank, the co-conspirators stole large portions of investment contributions to fund their criminal enterprise and the bank’s lavish lifestyle.
“These defendants and their co-conspirators are responsible for orchestrating an extraordinarily serious national ploy to defraud hundreds of investors over $ 25 million,” said Raj Parekh, Acting United States Attorney for the Eastern District of Virginia . “Driven by their voracious greed, the defendants preyed on the elderly and exploited the trust of vulnerable victims by depriving them of their hard-earned retirement funds and life savings for their families. The financial damage they have caused to each victim is heartbreaking and the emotional damage they inflicted is incalculable. The sentences imposed in this case reflect the enormous scale and scope of this securities fraud scheme and send a strong message that those who commit these devastating financial crimes will face significant consequences in our courts. “
“Darryl Bank and Billy Seabolt, along with their co-conspirators, stole hundreds of elderly victims of their savings and ruined the financial security many had worked for all their lives. Their actions caused unnecessary hardship and were taken with cruel indifference to the lasting impact on their victims, ”said Brian Dugan, special agent in charge of the FBI field office in Norfolk. “Because of the devastating impact of elder fraud schemes on victims, the FBI is committed to arresting criminals who prey on the elderly. If you or a family member has been a victim, please contact the FBI at 1-800-CALL-FBI, or tips.fbi.gov.
“The bank, Seabolt and others have caused significant financial ruin for hundreds of innocent people by tricking victims into trusting them with their retirement funds under the guise of a promising investment opportunity,” said Darrell J Waldon, Acting Special Agent in charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) Washington DC Field Office. “While it cannot erase the hardships these victims endured as a result of this scheme, we hope today’s conviction will bring an end to this horrific time in their lives. “
“Those who engage in deceptive securities practices should know that they will not go unnoticed and will be held accountable,” said Daniel A. Adame, inspector in charge of the Washington division of the US Postal Inspection Service. “Postal inspectors have been investigating financial crimes like the ones alleged here for many years. Our duty is to protect investors from those who abuse US Mail and to protect the integrity of our mail system.
In 2010, the Bank, then a registered securities broker, was excluded from the securities industry by the Financial Industry Regulatory Authority. Undeterred, the Bank established an investment company called the Dominion Private Client Group (Dominion) and continued to sell unregistered securities by itself and through insurance sellers across the country. Seabolt, whose legal practice otherwise focused on elder and trust law, served as Dominion’s legal counsel and was involved in the negotiation and development of numerous fraudulent investments and companies.
The conspirators made significant misrepresentation and omissions to sell illiquid and highly speculative investment vehicles. Based on these fraudulent statements, unsuspecting investors cashed in 401 (k) and other retirement accounts to invest in the Bank’s investments, unaware that the Bank immediately transferred 20-70% of funds from the investors to other companies he controlled in the form of so-called “fees,” much of which was ultimately spent on luxury and designer goods. As a result of this investment fraud scheme, victims suffered losses of over $ 25 million.
Bank, who was found guilty on all 27 counts before the jury, was sentenced to 35 years in prison for conspiracy, mail and electronic fraud, sale of unregistered securities, securities fraud and money laundering. Seabolt was sentenced on September 15 to 10 years in prison for multiple conspiracy, mail fraud and selling unregistered securities.
Gibson pleaded guilty to conspiracy and was sentenced to 10 years in prison in February. Hudspeth pleaded guilty to investment adviser fraud and money laundering, and was sentenced to over 12 years in prison in May 2018.