A self-proclaimed stock ‘trader’ who served as the treasurer of a church’s charitable foundation in Dallas, Texas, has been sentenced to over seven years in federal prison for fraud. Thomas Calhoun Bain, 75, pleaded guilty to two counts of wire fraud in March and was sentenced by U.S. District Judge Jane Boyle on Thursday.
The U.S. Attorney for the Northern District of Texas, Leigha Simonton, announced the sentencing. Bain was responsible for transmitting monetary donations to organizations that supported gospel-based initiatives. However, he allegedly defrauded the charitable foundation out of approximately $1.4 million, using the funds to support his lifestyle.
Bain directed the entity to transmit all funds to him, claiming he would distribute the money to charities. Instead, he used the funds to pay for rent on a home in Highland Park, a membership to a country club, domestic and international travel, and a vacation rental in Aspen.
In addition to the wire fraud, Bain also defrauded investors through his company, BainTrade. He falsely guaranteed an annual return of at least 8 percent on their investments with BainTrade, with a 50-50 split between himself and investors for any yearly return above 8 percent.
Bain engaged in a Ponzi-type scheme, using new investor funds to make distribution payments to prior investors. He put remaining investor funds toward his high-end rental home, country club membership, and travel, bolstering his appearance as a wealthy and successful ‘trader.’
Bain generated fake contracts that he required investors to sign and fraudulent account statements showing fake annual earnings and profits generated. He also falsely told investors that he was investing his own money. Between 2010 and 2022, Bain fraudulently obtained more than $871,000 from BainTrade investors.
Bain was ordered to pay $1,725,551 in restitution to various victims. The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation, and Assistant U.S. Attorney Jenna Rudoff prosecuted the case.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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