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October 26, 2017
The former mayor of North Miami Beach has been charged in an alleged $150,000 land investment scheme.
The man was arrested Tuesday and charged with securities fraud, grand theft, sale of an unregistered security and sale of security by an unregistered dealer.
According to the Miami-Dade County state attorney’s office, the man made a series of false investment representations and omitted several facts to an investor who donated $150,000 to the man intended for the development of 2.2 acres of vacant land in North Miami.
An investigation by prosecutors and the Florida Office of Financial Regulation revealed that the partnership failed to gain any additional investors.
Instead of returning the donated $150,000, the money was allegedly used to pay $13,000 toward the former mayor’s home mortgage, $10,000 to his construction company, $86,700 to himself directly and about $30,000 in personal expenses through his construction company, according to police.
Prosecutors said a balance of just $350 was left in the investment account when all was said and done.
The former mayor was being held at the Turner Guilford Knight Correctional Center on a $20,000 bond.
Securities fraud, otherwise known as investment fraud, is an intentional and deceptive business practice that occurs when a person and/or company conceals financial information to try to influence the purchasing behavior of investors and shareholders. People found guilty of securities fraud can face serious penalties that may include restitution, fines, jail time loss of license and others. If you are facing charges for any type of securities fraud offense, it is critical that you seek the advice of a South Florida White Collar Crimes Lawyer at Whittel & Melton who will fight to protect your interests.
You do not want to waste time in these cases. Contact our office today to discuss your securities fraud case. We are available 24/7. Call us today at 561-367-8777 or contact us online to schedule your initial consultation.