St. Louis, MO – Charles Williams, a local investment advisor, has pleaded guilty to defrauding 11 investors out of their funds between November 1, 2007 and January 31, 2013.
According to court documents, Williams and his company, C.R. Williams Investment Fund, LLC, and C.R. Williams Tax Advantaged Investment Fund, LLC, accepted investments from existing account holders despite being barred from association with any investment adviser by the Securities and Exchange Commission on March 6, 2008.
Williams devised a scheme to defraud financial investors by promising that the funds they provided to him were maintained in the C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC. However, without the authorization of the investors, Williams made multiple electronic transfers from investor accounts into his two investment funds.
To conceal the transfers of funds from the two investment accounts into other financial accounts, Williams prepared and mailed fraudulent portfolio valuations for C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC to investors.
Williams used the investors’ funds to pay for his office rental, personal expenses, mortgage and vehicle expenses, as well as to draft checks which he made payable to himself.
The scheme resulted in a loss of $753,144 for the 11 investors. By December 28, 2012, UMB Bank records revealed that only $11,800 remained in the C.R. Williams Investment Fund, LLC account, and $54,400 in the C.R. Williams Tax Advantaged Investment Fund, LLC account.
Williams, 66, pleaded guilty to one felony count of wire fraud and two felony counts of mail fraud before United States District Judge Henry Autrey. Sentencing has been set for May 26, 2015.
Each of these charges carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
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Key Facts
- State: Missouri
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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