Fort Smith’s Moates Pleads Guilty to Investment Fraud Scheme

Fort Smith’s William Jackson Moates Jr. has pleaded guilty to a multi-million dollar investment fraud scheme that bilked investors and the Department of Health and Human Services out of substantial sums.

The 49-year-old defendant, along with associates, operated several businesses in Fort Smith, including Trilennium Financial Alliance, T3Vest, Burrito Brothers, and B3NWCR. Moates is accused of soliciting investments and misusing the funds for personal gain, including home renovations and vacations.

Between early 2010 and January 2015, Moates received investments from at least 25 investors but failed to invest as promised. Instead, he used the money for his own benefit, paying off debts, and funding various businesses. His actions also included fabricating documents to obtain insurance policies and diverting funds meant for Physicians Alliance, a corporation he helped establish with federal dollars.

Moates faces charges of Wire Fraud, Mail Fraud, Theft Concerning Programs Receiving Federal Funds, Money Laundering, and Theft or Embezzlement from an Employee Benefit Plan. The plea was accepted by Chief Judge P.K. Holmes, III in the United States District Court in Fort Smith.

The scheme also involved diverting funds to pay for personal expenses such as iTunes and Amazon accounts, charitable contributions, and home mortgage payments.

Moates’ fraudulent activities were discovered through a complex web of banking software that allowed him and others to transfer money between accounts with ease. The scheme is another stark reminder of the dangers of unregulated investment schemes and the importance of due diligence when investing funds.