Virginia Investment Adviser Pleads Guilty to Mail Fraud and Engaging in Monetary Transactions

Posted on October 29th, 2018 at 11:13 AM
Virginia Investment Adviser Pleads Guilty to Mail Fraud and Engaging in Monetary Transactions

From the Desk of Jim Eccleston at Eccleston Law LLC:

According to the U.S. Department of Justice, Virginia investment adviser, Edward Lee Moody Jr. plead guilty to mail fraud and engaging in monetary transactions in criminally derived property in connection with orchestrating a thirteen-year Ponzi-scheme.

Moody, who owned CM Capital Management, an RIA out of Virginia Beach, was also the subject of a civil complaint filed by the SEC seeking an injunction, disgorgement, and penalties.

According to the criminal complaint filed by the Department of Justice, from April 2005 until June 2018, Moody defrauded nearly sixty investors by claiming that he successfully managed his client funds by investing in profitable securities. However, Moody never invested any of his client’s funds as promised.

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.

Moody could face up to twenty years in prison for the mail fraud charge and ten years for engaging in monetary transactions in criminally derived property.

Eccleston Law is investigating the fraudulent activities of Edward Lee Moody Jr. Those with information should contact our law firm.

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, fraud

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