A 66-year-old Vancouver man has pleaded guilty to a brazen $4 million Ponzi scheme that left dozens of friends and family members financially devastated.
Charles Richard Burgess, who is not a licensed investment advisor, promised his victims a steady return on their investments, but instead used their money to line his own pockets.
Between 1995 and 2021, Burgess solicited $13.4 million from 64 people, including friends and family members, by selling them investments in an unregistered investment vehicle called ‘the pool.’
However, Burgess never became a registered or licensed investment advisor, and his investment vehicle was insolvent from at least 2013. He continued to deceive his victims, sending them false statements indicating their account balances had grown substantially over time.
As the scheme unraveled, Burgess paid off earlier investors with money from new investors, a classic Ponzi scheme. He also used investor money for his own expenses, transferring $1.4 million to his personal account between 2014 and 2021.
Under the plea agreement, Burgess will be ordered to pay $4,359,113 to the victim investors.
Burgess faces up to 20 years in prison when sentenced by U.S. District Judge David Estudillo on November 4, 2022. The case was investigated by the FBI with assistance from the Washington Department of Financial Institutions.
Related Federal Cases
- Morales Cacique, Money Laundering, Florida 2016 · Washington
- Travis Hill, Securities Fraud, Washington 2023 · Washington
- Lamar Cox, Bank Fraud, Washington 2007 · Arkansas
- Edward H. Kahler, Elder Financial Advisor Mail Fraud, Seattle WA, 2023 · Alaska
- Broek Profited, Contract Fraud, Washington DC, 2023 · New York
Key Facts
- State: Washington
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime