A Wilmington man faces up to 30 years in prison for his role in a $7 million investment fraud scheme.
Shawn Edward Good pleaded guilty Thursday to wire fraud and money laundering, according to a press release from the US Department of Justice.
A lawsuit filed by the Securities and Exchange Commission in April accused Good of running a decade-long “Ponzi scheme” that resulted in the loss of at least $2 million in investments.
“We are cracking down on fraudsters who scam unwitting investors,” U.S. Attorney Michael Easley said in Thursday’s statement. “This investment adviser betrayed the trust of at least a dozen clients, taking more than $7 million – the money he promised would go to low-risk investments – and used it to fill himself pockets, buying real estate, luxury cars and vacations. This decade-long scam has finally come to an end.
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Good was a Registered Representative and Investment Advisor for Morgan Stanley Smith Barney, LLC in Wilmington. From December 2012 to February 2022, Good solicited funds from clients in his personal bank account for “low risk investments”, which he then used for personal expenses.
According to the release, Good used the more than $7.2 million he defrauded from at least 12 victims to pay for his Wilmington residence, Florida condo, luxury vehicles and vacations, among other things. expenses.