Lexington Advisor Hawkins Found Guilty of Investment Fraud

LEXINGTON, Ky. – The grim tale of financial deceit reached its climax as Douglas Hawkins, a oncetrusted Lexington-based investment advisor and attorney, was found guilty late Friday by a federal jury in Lexington for investment advisor fraud, securities fraud, and two counts of mail fraud.

Hawkins, a Richmond, Ky., resident, lured his clients with promises of lucrative investments in Jackson, Mississippi properties. However, over $2 million in client funds were funneled into schemes that were far from the golden opportunities advertised. The truth was buried beneath layers of deceit; many of the properties were uninhabitable, rent collection a nightmare, and the specter of theft and vandalism loomed large. Hawkins failed to disclose this critical information when advising his clients on where to invest their hard-earned money.

And that’s not all. The jury learned that Hawkins’ investment scheme was merely a front for personal gain, as he redirected funds from investors to pay off other creditors and even purchased a Harley Davidson with the money that should have gone toward securing property investments. It’s a staggering betrayal of trust, one that has left many victims in financial ruin.

The charges against Hawkins were first laid out in October 2021. United States Attorney for the Eastern District of Kentucky, Carlton S. Shier, IV; Special Agent in Charge Kyle Erhardt of the United States Postal Inspection Service; and Acting Commissioner Justin Malcom Burse of the Kentucky Department of Financial Institutions jointly announced the guilty verdict, signaling a victory for justice.

The investigation was a joint effort by the United States Postal Inspection Service and the Kentucky Department of Financial Institutions. Assistant U.S. Attorneys Andrea Mattingly-Williams and Will Moynahan represented the United States in this case, ensuring that justice was served.

Hawkins is set to appear for sentencing on April 24, 2023. The consequences of his actions could be severe, with up to five years in prison for investment advisor fraud; up to 20 years for securities fraud; and up to 20 years for each mail fraud count. But the final sentence will depend on the U.S. Sentencing Guidelines and applicable federal sentencing statutes. Hawkins also faces significant fines and restitution orders from the court.