WILLIAMSBURG, Va. (WAVY) — A former investment advisor in Virginia Beach, an attorney from Williamsburg and a salesman from Chesapeake are part of a group that was recently sentenced in a nationwide fraud scheme that targeted the elderly.
According to a release from the Department of Justice on Monday, Sept. 20, the group, consisting of 51-year-old Daryl Bank of Port St. Lucie, Florida, and his co-conspirators — including his attorney, 56-year-old Billy Seabolt of Williamsburg, 49-year-old corporate executive Raeann Gibson of Florida, and 52-year-old salesman Roger Hudspeth of Chesapeake — deceived investors across the country, which caused the victims to lose more than $25 million.
Most of the victims were at or near retirement age who unknowingly invested in a fraud scheme ran by Bank from January 2012 through July 2017. At Bank’s direction, co-conspirators stole significant portions of investment contributions to fund their criminal enterprise and Bank’s lavish lifestyle.
It began in 2010 when Bank, then a registered securities broker, was barred from the securities industry by the Financial Industry Regulatory Authority.
After being barred, Bank created an investment company called Dominion Private Client Group (Dominion) and continued to sell unregistered securities across the country.
Seabolt served as Dominion’s legal counsel and was involved in negotiating and developing many of the fraudulent investments and corporations. Seabolt had a background in elder and trust law.
Based on these fraudulent representations, unsuspecting investors cashed out of 401(k) and other retirement accounts to invest in Bank’s investments.
Little did they know, Bank was transferring 20 to 70 percent of the investors’ funds to other companies that he controlled in the form of purported “fees.” Court documents say he ultimately spent most of the funds on luxury and designer goods.
Bank was convicted on all 27 counts submitted to the jury, was sentenced Monday to 35 years in prison for conspiracy, mail and wire fraud, selling unregistered securities, securities fraud and money laundering.
Seabolt was sentenced on Wednesday, Sept. 15 to 10 years in prison on multiple conspiracies, mail fraud, and sale of unregistered securities charges.
Gibson pleaded guilty to conspiracy and was sentenced to 10 years in prison in February 2020.
Hudspeth pleaded guilty to investment advisor fraud and money laundering and was sentenced to over 12 years in prison in May 2018.
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