A federal jury recently convicted Daryl Bank, 51, of Port Lucie, Florida, in connection with a $25 million nationwide investment fraud.
Daryl Bank was convicted of conspiracy, mail and wire fraud, selling unregistered securities, securities fraud, and money laundering, according to a Department of Justice news release.
As explained in the news release from the U.S. Attorney’s Office, Eastern District of Virginia:
“According to court records and evidence presented at trial, Daryl Bank, 51, of Port St. Lucie, Florida, ran an investment fraud scheme from approximately January 2012 through July 2017, based in the Tidewater area and Port St. Lucie, and operating across the country. Bank and his co-conspirators—including attorney Billy Seabolt, 56, Raeann Gibson, 49, of Florida, and Roger Hudspeth 51, of Suffolk—deceived hundreds of unsuspecting investors, most of whom were at or near retirement age, by convincing them to invest in companies owned and controlled by Bank. At Bank’s direction, co-conspirators stole significant portions of investment contributions to fund their criminal enterprise and Bank’s lavish lifestyle.
In 2010, Bank, then a registered securities broker, was barred from the securities industry by the Financial Industry Regulatory Authority (FINRA). Undeterred, Bank created a private equity company called Dominion Private Client Group (Dominion) and continued to sell unregistered securities on his own and through insurance salesmen across the country. Billy Seabolt served as Dominion’s legal counsel and was involved in the development of many of the fraudulent investments and corporations.
The conspirators made material misrepresentations and omissions to sell illiquid, highly speculative investment vehicles. Based on these fraudulent representations, unsuspecting investors cashed out of 401(k) and other retirement accounts to invest in Bank’s investment vehicles, without knowing that Bank immediately transferred 20%–70% of the investors’ funds to companies that he controlled in the form of purported ‘fees.’ As a result of this investment fraud scheme, the victims suffered losses in excess of $25 million.”
Fishman Haygood’s team of investment fraud lawyers represent investors who have suffered investment losses in claims against their brokers or financial advisors and the firms employing/supervising them, including victims of elder financial abuse. If you believe that you may have suffered financial losses due to the misconduct of a financial professional, we may be able to help. Please contact us to discuss your potential claim.