RICHMOND, Va. – The grimy truth behind the high-flying investments was exposed as Sherman Carl Vaughn, 46, of Blackstone, Virginia, was sentenced to 12 years in prison for masterminding a fraudulent investment scheme that siphoned over $10 million from unsuspecting investors.
According to court documents, Vaughn and his co-conspirator Merrill Robertson, Jr., 38, of Chesterfield, launched Cavalier Union Investments, LLC in 2009. For nearly a decade, they duped individuals into believing they were seasoned investment gurus, promising exclusive funds and opportunities that never materialized.
But the truth was far from rosy. Vaughn, who claimed to be a successful investor with a philanthropic streak, had filed for bankruptcy four times during his fundraising spree. Robertson, leveraging his football connections, lured investors through various channels, including his time at Fork Union Military Academy and in the NFL.
Through their cunning scheme, Vaughn and Robertson swindled over $10 million, lavishing much of it on personal luxuries like mortgages, car payments, and lavish vacations. The duo’s deceitful tactics came to an end when a federal jury convicted Robertson of fifteen offenses, including mail and wire fraud, bank fraud, and money laundering, leading to a 40-year sentence.
The sentencing was announced by Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, along with Kimberly Lappin of IRS-CI, Adam S. Lee of the FBI, and Robert B. Wemyss of the U.S. Postal Inspection Service. Assistant U.S. Attorneys Katherine Lee Martin and Stephen E. Anthony prosecuted the case.
This sordid tale of financial exploitation was cracked with the assistance of the Virginia State Corporation Commission Division of Securities and Retail Franchising. For more information, visit the U.S. Attorney’s Office for the Eastern District of Virginia website or search Case No. 3:16-cr-33 on PACER.
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Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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