A former Bay Space monetary adviser was charged in reference to an alleged $9.5 million Ponzi scheme, the U.S. Division of Justice mentioned Monday.
A federal grand jury indicted 77-year-old Edwin Emmett Lickiss Jr. on one depend of wire fraud and one depend of cash laundering for allegedly defrauding at the very least 50 sufferer traders.
The Division of Justice mentioned that between 1998 and 2024, Lickiss — a monetary adviser in Danville and Alamo — owned and operated Basis Monetary Group, a agency that supplied funding providers to traders in Northern California, Idaho and all through the U.S.
The division mentioned that Lickiss was a registered dealer till 2014, when the Monetary Trade Regulatory Authority suspended his dealer’s license, however he allegedly continued to solicit and procure investments from traders till September 2024.
The indictment alleges that Lickiss informed traders he would make investments their cash in authorities bonds and different monetary merchandise, claiming he had unique entry to bonds that paid excessive charges of returns, together with charges increased than 20%. The indictment alleges Lickiss described the bonds as “protected, safe, and tax-free,” and falsely claimed that they may very well be redeemed at any time.
However as a substitute of investing the funds as promised, the indictment alleges Lickiss used traders’ cash to conduct a Ponzi scheme and pay different traders in addition to for private expenditures, together with money withdrawals, residence renovations, journey and automotive, mortgage and bank card funds. The indictment alleges Lickiss obtained at the very least $9.5 million from no fewer than 50 traders.
As a part of the scheme, Lickiss allegedly gave faux promissory notes outlining the phrases of the investments, made lulling funds to sufferer traders to keep away from suspicion and didn’t disclose that his dealer’s license was suspended in 2014 and later misplaced in 2016.
The Division of Justice mentioned the grand jury indictment was filed on July 17 and unsealed Monday.
Lickiss’ first court docket look is on Tuesday in San Francisco. The wire fraud cost carries a most of 20 years in jail and a $250,000 wonderful, whereas the cash laundering cost carries 10 years in jail and a $250,000 wonderful, the Division of Justice mentioned.
Lickiss additionally faces a civil enforcement motion from the U.S. Securities and Trade Fee within the Northern District of California.
