William S. Evans, Investment Fraud, Kentucky 2021

Lexington Man Sentenced to 120 Months for Investment Fraud

A Lexington man, William S. Evans, III, 69, was sentenced to 120 months in federal prison by U.S. District Court Judge Karen K. Caldwell on June 2021 for commodities fraud and wire fraud.

Evans, doing business as Turning Point Investments, solicited substantial amounts of money from numerous friends and acquaintances as investments, into a fund that he would manage by investing on the commodity futures market.

According to his plea agreement, he accepted funds from more than 20 investors, amounting to nearly $17 million, and invested a portion of that money on the commodity futures market, without registering as a commodity pool operator.

Evans convinced investors to turn over savings and liquidate their retirement accounts, promising substantial gains, low-risks, and coverage for any tax penalties. He reported back to his investors that there were substantial gains on their investments, paid out distributions upon request, and continuously solicited more investments.

However, in reality, Evans lost nearly all the funds he invested on the commodity futures market, paid people distributions out of other people’s investments, and spent some of the investment funds on personal expenditures.

Evans was also ordered to pay restitution in the amount of $16,934,773.40.

The investigation was conducted by the United States Secret Service and Kentucky Department of Financial Institutions, with assistance from the U.S. Commodity Futures Trading Commission.

The United States was represented by Assistant United States Attorney Kathryn Anderson.

Evans pleaded guilty in June 2021.

The case highlights the importance of investors being cautious when dealing with unregistered investment opportunities.

The Lexington community can breathe a sigh of relief knowing that justice has been served.

Source: https://www.justice.gov/usao-edky/pr/lexington-man-sentenced-120-months-investment-fraud