Virginia Investment Adviser Sentenced to 13 Years in Prison in Connection with Operating a $5 Million Ponzi Scheme

Posted on February 8th, 2019 at 10:27 AM
Virginia Investment Adviser Sentenced to 13 Years in Prison in Connection with Operating a $5 Million Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

According to the U.S. Department of Justice, Virginia investment adviser, Edward Lee Moody Jr. has been sentenced to 13 years in prison after pleading guilty to mail fraud and other related charges in connection with orchestrating a 13-year Ponzi-scheme.

Moody, who owned CM Capital Management, an RIA in Virginia Beach, was also the subject of a civil complaint filed by the SEC seeking an injunction, disgorgement, and penalties.

According to the criminal complaint filed by the Department of Justice, from April 2005 until June 2018, Moody defrauded nearly 60 investors by claiming that he successfully managed his client funds by investing in profitable securities. However, Moody never invested any of his clients’ funds as promised.

Instead, Moody used client money to pay off earlier investors in a Ponzi scheme like manner and used the rest for personal expenses, such as buying a house, a car, remodeling his new home, travel expenses, and paying for his restaurant and bar tabs.

Moody maintained his scheme by sending clients fake monthly account statements that reported profitable returns on their investments and by making periodic repayments to investors with other investor funds.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, department of justice, cm capital management, ponzi scheme, fraud, edward lee moody jr.

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

March 14, 2025
Apex Clearing to Pay $3.2 Million in FINRA Settlement Over Securities Lending Violations

Apex Clearing, the clearing arm of Apex Fintech Solutions, has agreed to pay $3.2 million to settle FINRA allegations that it failed to ensure customers received compensation for lending their securities.

March 13, 2025
Congress Considers Expanding the Accredited Investor Definition

A recent congressional hearing examined potential reforms to the accredited investor definition, a critical threshold determining who can participate in private market investments.

March 12, 2025
GPB Capital Investors May Receive Some Compensation Under Proposed Distribution Plan

GPB Capital Holdings investors have not received returns on their investments since 2018. According to InvestmentNews, after years of litigation, a court-appointed receiver has submitted a plan to return funds to the 17,000 investors who purchased $1.8 billion in GPB limited partnerships.