Former FBI Special Agent John Robert Graves and his wife, Sara Turberville Graves, have been charged in the Eastern District of Virginia with a complex investment fraud scheme that swindled $1.3 million from 11 investors in central Virginia.
The indictment, unsealed on July 2011, accuses the couple of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. John Graves, 52, was also charged with three counts of Investment Adviser Act fraud and one count of making false statements.
According to the indictment, John Graves founded Brook Point Management (BPM) in 2003 and served as president of BPM, a corporation through which he sold insurance, performed estate and tax planning services, and recruited and advised investment clients. He was a certified financial planner and held numerous securities industry registrations, including the Series 7 and Series 65 registrations.
The indictment alleges that between June 2008 and July 2011, John Graves, Sara Graves, and others devised and executed a scheme to defraud the investors, raising funds through misrepresentations about the safety and security of the investments and misrepresentations and omissions regarding their use of investor money.
The couple used investor funds to pay back previous investors, purchase real estate in Partlow, Va., and pay personal expenses, including credit card bills and time share dues. John Graves allegedly continued to make misrepresentations even after the scheme was uncovered, through false and misleading statements to the investors and to investigators from the U.S. Securities and Exchange Commission (SEC), FBI, and USPIS.
The Graves face a maximum penalty of 20 years in prison for each count of conspiracy, mail and wire fraud, as well as a fine of up to $250,000 or twice the loss to the victims. In addition, John Graves faces a maximum penalty of five years in prison for each count of Investment Adviser Act fraud and a fine of up to $10,000 per count and five years in prison for the false statement count and a fine of up to $250,000.
The case was investigated by the FBI and USPIS, with assistance from the SEC. The case is being prosecuted by Trial Attorney Kevin B. Muhlendorf of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie L. Mickelson of the Eastern District of Virginia.
A criminal indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
The Graves made their initial appearance in U.S. District Court in Richmond on July 2011.
Defendant: John Robert Graves and Sara Turberville Graves
Criminal Charges: Conspiracy to commit mail and wire fraud, mail fraud, wire fraud, Investment Adviser Act fraud, and making false statements
City and State: Fredericksburg, Virginia
Exact Date: July 2011
Sentence or Outcome: The case is ongoing.
Dollar Amount: $1.3 million
Related Federal Cases
- Donald Omar Fazel, Real Estate Investment Fraud, Virginia 2017 · Virginia
- Babu Ramaraj, Investment Fraud, Virginia 2020 · Washington
- Lara Coleman, Mail and Wire Fraud, Virginia 2023 · Florida
- Sandra Ball, Wire Fraud, West Virginia 2013 · New Hampshire
- Amy Lynn Galloway, Bookkeeping Fraud, Virginia 2016 · Florida
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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