In recent news, Charles Caleb Fackrell of North Carolina reportedly has pleaded guilty to one count of securities fraud for operating a Ponzi scheme. Court documents allege that from about May 2012 to about December 2014 Frackell operated a $1.4 million Ponzi scheme using funds from at least 20 investors in Wilkes County, North Carolina and other areas.
Fackrell stands accused of using his position as a stockbroker to solicit investors into purported investments he controlled and which provided him access to investors’ funds. The investments reportedly included “Robin Hood, LLC,” “Robinhood LLC”, “Robin Hood Holdings, LLC,” “Robinhood Holdings, LLC.”
The Yadkin Ripple reports that according to court records, Fackrell falsely told investors that their money would be invested in or secured by gold and other precious metals, when in fact only a fraction of investors money was put into such assets. Court Records indicate that Fackrell used over $700,000 of investors money to make purported “interest” payments to other investors. However, the majority of investors’ money, again according to court records, were apparently used by Fackrell to cover personal expenditures including large cash withdrawals.
U.S. Attorney Jill Westmoreland Rose said, “Fackrell is an unscrupulous scammer that betrayed those who trusted him with their nest egg. Instead of using his clients’ money for legitimate investments, as he promised he would, Fackrell focused on enriching himself and perpetuation his fraud through lies.”
According to BrokerCheck, Fackrell was a registered representative with LPL Finanical during the relevant time. The White Law Group is investigating the liability that LPL may have for failure to properly supervise Fackrell.
When investors are duped by greedy and unscrupulous financial professionals, the brokerage firms that employs such individuals may be held liable for the losses. Brokerage firms have a responsibility to monitor the conduct of their representatives and implement the necessary safeguards to detect fraud.
The White Law Group is committed to helping victims of investment fraud. If you have suffered losses investing with Charles Caleb Fackrell and would like to speak to a securities attorney, please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.whitesecuritieslaw.com.