Melvin Leonard Wimmer, Securities Fraud, South Carolina 2017

Related Federal Cases

SC Doctor Admits Tax Fraud, Faces Prison · South Carolina
Fort Lawn Man Nabbed for Decades of Social Security Fraud · South Carolina
SC Speech Pathologist Accused of Massive Medicaid Fraud · South Carolina
Army Veteran Gets 2 Years for $712K Tax Fraud · Kentucky
Myrtle Beach Furniture Firm Accused of Duty Fraud · South Carolina

Table of Contents

Greenwood Man Pleads Guilty to Securities Fraud

Columbia, South Carolina – In a shocking turn of events, Melvin Leonard Wimmer, Jr., a 53-year-old resident of Greenwood, South Carolina, has pleaded guilty to Securities Fraud, a serious offense that can land him up to 25 years behind bars.

According to court documents, Wimmer started an investment firm called Cornerstone Capital in 2007. Between 2010 and 2017, a staggering 25 individuals invested $3.6 million with Wimmer. However, the investment firm’s fortunes soon took a turn for the worse.

In a brazen move, Wimmer pooled the money into one bank account and traded primarily securities and stock futures and options. Unfortunately, he invested in high-risk securities and futures contracts, which resulted in the loss of approximately $3 million of the investors’ money.

Wimmer’s scheme was facilitated by his issuance of fraudulent account statements to his investors. Instead of reporting the losses, he sent out monthly account statements that falsely listed gains of 8-10 percent on an annualized basis. This deception was ongoing from the outset and continued until the scheme collapsed.

Prosecutors have described Wimmer’s actions as ‘fraudulent’ and ‘deceptive.’ The Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI) have been investigating the case, with Assistant United States Attorney Rhett DeHart handling the prosecution.

United States Attorney Beth Drake warned that the maximum penalty for Securities Fraud is imprisonment for 25 years and/or a fine of $250,000. The court will determine Wimmer’s sentence after reviewing the presentence report prepared by the U.S. Probation Office.

As the case unfolds, investors who lost money in Wimmer’s scheme are left to pick up the pieces. The Securities Fraud conviction serves as a stark reminder of the importance of conducting due diligence before investing in any scheme.

RELATED: Gun Crime Busted