Gary Richard Vibbard, Mail Fraud, Minnesota 2013

Gary Richard Vibbard, a 59-year-old man from Leesburg, Florida, has pleaded guilty to defrauding investors and investment fund managers out of more than $2,500,000 in a brazen investment scheme that spanned from 2008 to 2010.

In a shocking turn of events, Vibbard, who was formerly based in Wayzata, Minnesota, entered his plea before United States District Court Judge Paul A. Magnuson in federal court in St. Paul, Minnesota, last week.

According to the plea agreement, Vibbard admitted that he engaged in a scheme to deceive investors and investment fund managers through the sale of investments in R. Capital Advisors (RCA), a Minnesota company that he created, owned, and managed.

Instead of paying investors their profits as planned, Vibbard’s company resorted to repaying earlier investors with funds provided by later investors, leaving more than 10 victims of funds totaling between $2,500,000 and $7,000,000.

The U.S. Attorney’s Office and Vibbard have agreed to recommend a 63-month prison sentence to Judge Magnuson, in addition to ordering Vibbard to pay restitution and potentially a fine.

A sentencing hearing is yet to be scheduled, but one thing is clear: Vibbard’s actions have had far-reaching consequences for those who trusted him with their investments.

This case is the result of an investigation by the United States Postal Inspection Service and the Federal Bureau of Investigation, with Assistant U.S. Attorney Robert M. Lewis handling the prosecution.

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