Wilmington Funding Advisor Pleads Responsible to Expenses Associated to $7 Million Scheme to Defraud Shoppers | USAO-EDNC

RALEIGH, N.C. – Shawn Edward Good of Wilmington, pleaded responsible at the moment for his position in a $7 million greenback funding fraud scheme. Good pleaded responsible to wire fraud and cash laundering and faces as much as 360 months in jail.

“We’re cracking down on fraudsters who rip-off unwitting traders,” mentioned U.S. Lawyer Michael Easley.  “This funding advisor breached the belief of no less than a dozen shoppers, taking on $7 million – cash he promised would go to low-risk investments – and used it to line his pockets, shopping for actual property, luxurious vehicles, and holidays.  This decade-long rip-off has lastly come to an finish.”   

“Excessive yield funding fraud schemes are designed to attraction to folks’s hope that ‘you may get one thing for nothing,’ typically ensuing within the complete lack of the funding,” mentioned Donald “Trey” Eakins, IRS Legal Investigation Particular Agent in Cost of the Charlotte discipline workplace. “Be assured that IRS Legal Investigation, along with our companions at North Carolina State Bureau of Investigation (SBI) and the U.S. Lawyer’s Workplace, will maintain those that interact in related habits totally accountable.”

In line with courtroom paperwork and knowledge introduced in courtroom, Good was employed as a registered consultant and funding advisor for Morgan Stanley Smith Barney, LLC in Wilmington.  From 2012 to February 2022, Good executed a scheme to acquire cash by funding fraud, generally often known as a Ponzi scheme.  Particularly, Good solicited investments from enterprise shoppers and others for purported actual property initiatives and tax-free municipal bonds, touting these alternatives as low-risk investments that may pay returns of between 6% and 10% over three- or six-month phrases.

To effectuate these investments, Good triggered some shoppers to acquire a liquid asset line of credit score (LAL) secured by their Morgan Stanley funding or retirement accounts.  Good directed shoppers to switch the LAL funds to their private financial institution accounts after which wire the funds on to Good’s private checking account.  Different victims paid Good by paper test and wire transfers utilizing funds derived from sources aside from Morgan Stanley accounts. 

A minimum of 12 victims invested roughly $7,246,300 primarily based on false statements and misrepresentations made by Good.  As a substitute of investing in land improvement or bonds, Good used the cash for private expenditures together with his Wilmington residence; a condominium in Florida; luxurious automobiles together with a Mercedes Benz, a Porsche Boxster, a Tesla Mannequin 3, an Alpha Romeo Stelvio, and a Lexus RX350; effective eating; and holidays to Paris, France; Cinca Terra, Italy; Jackson, Wyoming; Las Vegas, Nevada; and different locations.  To lend credibility to the Ponzi scheme and to elude detection, Good additionally used a portion of investor funds to make funds to earlier traders.

Michael Easley, U.S. Lawyer for the Jap District of North Carolina made the announcement after United States Justice of the Peace Choose Robert T. Numbers, Jr. accepted the plea. The Inner Income Service Legal Investigations Unit and the N.C.  State Bureau of Investigation Monetary Crimes Unit are investigating the case and Assistant U.S. Lawyer Toby Lathan is prosecuting the case.

Associated courtroom paperwork and knowledge may be discovered on the web site of the U.S. District Courtroom for the Jap District of North Carolina or on PACER by trying to find Case No. 7:22-CR-00096-D.  


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