Carlton Chadbourne Sayers has been indictment in district court. The 51-year-old is accused of Texas investment fraud and he is charged with mail fraud, wire fraud, aggravated identity fraud, and bank fraud. The scam caused dozens of investors to lose over $3M.
According to the indictment, Sayers allegedly sought to bilk a number of fraud victims by asking that they lend or invest funds with him and Wellington & Franklin Financial. He allegedly promoted that their funds would go toward buying or renovating residential real property and would be securitized by interest in these properties. He also is accused of promising a significant return rate.
Instead, states the indictment, rather than invest the funds the way he represented they would be invested, Sayers failed to secure interests in actual property or, in instances when he and Wellington & Franklin Financial actually owned a residential property, it was one that had already been bought with a pre-existing loan from an experienced investor and to whom the property was already acting as a security. Sayers is accused of bilking dozens of inexperienced investors who thought they were getting involved in secure investments that were giving them an opportunity to make higher returns than they would have with other investments.
Unsuitable Investments
Not every investment is suitable for all investors. Some investments are more appropriate for experienced/sophisticated investors, wealthy investors, institutional clients, or other types of investors that also can take on high-risks. For many retail investors, they cannot afford to lose a lot of money on investing and to sustain such losses may lead to devastating consequences.
Senior Financial Fraud
Another group of investors who should be careful of taking on too much risk or getting involved in unsuitable investments are older investors. This week in Massachusetts, Secretary of the Commonwealth William Galvin ordered a Texas-based brokerage firm to pay $100K for selling unsuitable investments to seniors in his state.
The broker-dealer, Investment Professional Inc., admitted to the facts noted in the regulator’s the order. It now must pay restitution to four senior investors.
According to Galvin’s office, the Texas-based broker-dealer engaged in high-pressure sales contests and sold unsuitable investment products to senior depositors at community banks in Massachusetts. The partnerships between the San Antonio-based broker-dealer and the banks and its depository customers were used to give the firm and the banks additional revenue.
At Shepherd Smith Edwards and Kantas, our Texas securities fraud law firm represents investors that have sustained losses because of fraud that occurred in the state, as well as fraud that occurred elsewhere in the US. Over the years, we have helped thousands of investors to recoup their securities fraud losses.
Many investors may not realize that filing a securities claim is not something that should be done without legal representation. Contact us today. Your initial consultation is a no obligation, free session.
Dallas Man Indicted in East Texas Investment Fraud Scheme, Justice.gov, March 22, 2017