BOSTON – Stephen S. Eubanks, 48, of Hingham, Massachusetts, is facing serious time after admitting today in U.S. District Court to a calculated scheme that bilked neighbors and acquaintances out of nearly half a million dollars. Eubanks pleaded guilty to one count of wire fraud, a charge stemming from a years-long operation where he pocketed investor funds for personal use and to keep the con afloat.
The fraud began to unravel after an investigation kicked off in November 2016. Eubanks, a former broker terminated from several firms due to complaints and disciplinary issues, launched Eubiquity Capital LLC in February 2010. By 2016, the so-called hedge fund had attracted approximately $529,000 in investments. But the pitch was built on lies. Eubanks falsely claimed affiliation with financial giants like Goldman Sachs, TD Ameritrade, UBS Bank, and Fidelity Investments to lure in victims.
The scheme snared at least 32 people. One acquaintance handed over $125,000, another $20,000, and a Florida resident invested $50,000 – all based on Eubanks’ fraudulent representations. While some funds were actually invested, a substantial portion disappeared into Eubanks’ personal accounts. When investors requested statements detailing their returns, Eubanks fabricated documents or used unrelated account information to maintain the illusion of profitability.
The operation descended into a classic Ponzi scheme, with money from new investors being used to pay off earlier victims, a desperate attempt to mask the underlying financial ruin. In total, Eubanks defrauded his victims of approximately $435,000. The feds were able to connect the dots after a civil investigation was conducted by the Massachusetts Securities Division, which provided crucial support to the U.S. Attorney’s Office.
U.S. District Court Chief Judge Patti B. Saris has scheduled sentencing for July 11, 2017. Eubanks now faces a potential sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 – or twice the gross gain or loss resulting from the fraud, whichever is greater. While maximum penalties are rarely imposed, Eubanks’ actions will likely earn him a significant stretch behind bars.
The case was brought by Acting United States Attorney William D. Weinreb, with assistance from Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit is prosecuting the case. This case serves as a stark reminder of the devastating consequences of financial deception.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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