Update: Charles Fackrell Gets 5 Years Prison for Robin Hood Ponzi Scheme
Charles Fackrell of North Carolina was sentenced to more than five-years in prison for running a $1.4 million Ponzi scheme that operated under the name Robin Hood. Court documents allege that from about May 2012 to about December 2014 Fackrell operated the scheme using funds from at least 20 investors in Wilkes County, North Carolina and other areas.
Fackrell was 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,
Robin Hood Holdings, LLC
Robinhood Holdings, LLC
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, were allegedly used by Fackrell to cover personal expenditures including large cash withdrawals.
Failure to Supervise
According to FINRA BrokerCheck, Charles Fackrell was a registered representative with LPL Financial during the relevant time. Fackrell has 14 disclosures listed on his Broker Check report, including customer disputes alleging unsuitability, misrepresentation, excessive and unauthorized trading, forgery and selling away. The White Law Group continues to investigate the liability that LPL Financial may have for failure to properly supervise Fackrell.
Fackrell, of Booneville, N.C., was also ordered to serve three years under court supervision after he is released from prison and to pay almost $820,000 in restitution to clients.
When investors are duped by greedy and unscrupulous financial professionals, the brokerage firms that employ 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 C. 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.