Ponzi Scheme Alert: Were You a Victim of DaRayl Davis and His $5 Million Ponzi Scheme?

Ponzi Scheme

Were you a victim of financial advisor DaRayl Davis (CRD# 4934582) regarding a $5 million ponzi scheme that bilked 30 investors? Davis was registered with Investors Capital Corp. in Camp Springs, Maryland from 2006 to 2008 and has not been associated with any brokerage firm in the past decade.

In December 2017, the Securities and Exchange Commission (SEC) charged Davis, a self proclaimed “Financial Coach,” with operating an offering and investment advisory fraud.

In March 2018, the SEC entered a default judgment against Davis. Prosecutors charged Davis with six counts of money laundering, five counts of wire fraud, four counts of mail fraud, and one count of aggravated identity theft.

According to the SEC, Davis raised more than $5 million from 30 investors by selling them fictitious financial products described as “corporate bond notes” and “guarantee bonds,” and he used the money raised to fund a lavish lifestyle repay prior investors in a Ponzi-like manner. It is alleged that Davis told investors that the investments were guaranteed to receive annual interest payments of at 6-14%.

The SEC alleged that Davis hosted seminars marketed as the “Smart Money Academy” and “The Smart Money Millionaire Experience,” and used his religious affiliation to gain trust from investors. The complaint further alleges that the investment were not legitimate and Davis fabricated documents and made false statements concerning the fictitious financial products.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.

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Author: Jeffrey Erez

The founder of Erez Law, Jeffrey Erez, focuses exclusively on securities arbitration and litigation. Mr. Erez passionately believes in representing aggrieved investors and obtaining justice for his clients through litigation.