Virginia Investment Adviser Sentenced to 13 Years in Prison in Connection with Operating a $5 Million Ponzi Scheme

Posted on February 8th, 2019 at 10:27 AM
Virginia Investment Adviser Sentenced to 13 Years in Prison in Connection with Operating a $5 Million Ponzi Scheme

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. has been sentenced to 13 years in prison after pleading guilty to mail fraud and other related charges in connection with orchestrating a 13-year Ponzi-scheme.

Moody, who owned CM Capital Management, an RIA in 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 60 investors by claiming that he successfully managed his client funds by investing in profitable securities. However, Moody never invested any of his clients’ funds as promised.

Instead, Moody used client money to pay off earlier investors in a Ponzi scheme like manner and used the rest for personal expenses, such as buying a house, a car, remodeling his new home, travel expenses, and paying for his restaurant and bar tabs.

Moody maintained his scheme by sending clients fake monthly account statements that reported profitable returns on their investments and by making periodic repayments to investors with other investor 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, department of justice, cm capital management, ponzi scheme, fraud, edward lee moody jr.

Return to Archive

TESTIMONIALS

Previous
Next

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.