Virginia Investment Adviser Charged With Operating $5 Million Ponzi Scheme

Posted on July 13th, 2018 at 3:26 PM
Virginia Investment Adviser Charged With Operating $5 Million Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

On July 3, Virginia investment adviser, Edward Lee Moody was charged by the SEC for running a $5 million Ponzi scheme. According to the complaint, Moody and his firm, CM Capital Management, LLC defrauded nearly 60 investors by purporting he successfully managed his client funds by investing in profitable securities, when in reality, Moody never invested any of his client funds. Instead, Moody used client money to pay off earlier investors, in a Ponzi scheme like manner, and used the rest for his personal expenses, such as, buying a house, a car, remodeling his new home, travel expenses, and paying for his restaurant and bar tabs.

Moody kept up his scheme by sending clients fake monthly account statements that reported profitable returns on their securities investments and by making periodic repayments to investors with other investor funds.

The SEC is seeking an injunction, disgorgement, and penalties from Moody and CM Capital. The SEC also seeks disgorgement from relief defendant, G.E. Holdings, a company that the SEC alleges is wholly controlled by Moody and was used to receive and transfer victim funds.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, SEC, Investment

Return to Archive

TESTIMONIALS

Previous
Next

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

June 27, 2022
SEC Investigates A.G. Morgan Financial Advisors and Others For Selling Unregistered Securities

The Securities and Exchange Commission (SEC) is investigating Vincent Camarda, James McArthur, and A.G. Morgan Financial Advisors.

June 24, 2022
SEC Charges Advisors and Their Firm With Reg BI Violations Over Sales of GWG L Bonds

The Securities and Exchange Commission (SEC) has charged Western International Securities and five of its advisors with violating Regulation Best Interest (Reg BI) when they recommended and sold high-risk debt securities known as L Bonds to retirees and other retail investors.

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015.