A federal grand jury has charged a North Carolina man with several counts of fraud and tax evasion over a scheme to defraud nearly 100 people, including some professional athletes, of $19 million.
Richard Wyatt Davis Jr. was charged with one count of wire fraud, two counts of securities fraud, and three counts of tax evasion. Davis is accused of scamming investors by lying about his background as a registered financial consultant to steer investors to funds under his control. He told investors that their money would be used to invest in low-risk real estate, precious metals, and natural resources, among other things. But most of the money was diverted to cover Davis’s own personal expenses and lifestyle.
Davis targeted people through his church, preying upon those with fears of the stock market, frequently speaking at or hosting events for survivalists and “preppers,” those who believe a catastrophic disaster will occur and have been preparing for such an occasion.
Between 2005 and 2009, Richard Wyatt Davis Jr. used his DCG Commercial Fund to defraud approximately 40 people of $4 million, telling investors their money would be used to invest in short-term debt. He transferred the money to other entities under his control and used some of it to pay earlier investors back, in classic Ponzi-scheme fashion.
Davis was accused of defrauding 60 investors of $8.5 million through his DCG Real Assets entity between 2008 and 2015, promoting the fund as a way to “weather and prosper” amidst the “national crisis” of escalating sovereign and personal debt. Documents sent to potential investors touted the fund as generating an average rate of return of 32 percent, when most investors had received no return at all. As with his other fund, investor money was used to repay prior investors and pay for personal expenses.
Call a Los Angeles Securities Fraud Attorney Today
If you invested with Richard Wyatt Davis Jr., or have suffered a loss because you relied on your broker who made false statements, you may have certain legal rights that require your immediate attention.
Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.