If you were an investor with Charles Fackrell and believe you may be a victim of his fraud, or simply wish to know your rights, please call 1-866-817-0201 for a free consultation with an attorney.
Fackrell, a former LPL adviser based in North Carolina, was sentenced by a federal court to more than five-years in prison for running a $1.4 million Ponzi scheme that operated under the name “Robin Hood.”
The former adviser pleaded guilty to one count of securities fraud in April and was sentenced last week to 63 months in jail.
From May 2012 to December 2014, Fackrell ran his Ponzi fraud, misusing funds from at least 20 investors. He was a registered broker with LPL during that time.
Fackrell “used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments with” various “Robin Hood” named entities, according to the U.S. Attorney’s office. “These were entities [Mr.] Fackrell controlled and through which he could access the victim’s funds.”
Promising guaranteed annual returns of 5% to 7%, Mr. Fackrell “solicited his victim investors by making false and fraudulent representations, including that the investors’ money would be invested in, or secured by, gold and other precious metals,” according to the U.S. attorney. In fact, Mr. Fackrell spent only a fraction of investor money on such assets, the government claims, and diverted over $700,000 back to his investors in the fashion of a Ponzi scheme.
He used the balance of the money to cover personal expenditures, including hotel expenses, groceries and medical bills, and to make purchases at various retail shops and to make large cash withdrawals.
Information for this post was found at investmentnews.com.