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Richmond monetary advisor discovered responsible of fraud in federal court docket
Printed 12:02 pm Wednesday, February 8, 2023
A Lexington space funding advisor and legal professional, Douglas Hawkins, of Richmond, has been discovered responsible by a federal jury at U.S. District Court docket in Lexington of funding advisor fraud, securities fraud, and two counts of mail fraud.
The U.S. Lawyer’s workplace for the Japanese District of Kentucky says in response to the proof offered in the course of the trial, whereas working as an funding advisor, Hawkins inspired his purchasers to spend money on securities, which had been properties in Jackson, Mississippi. Purchasers invested over $2 million within the properties.
Hawkins withheld important details about the properties when advising his purchasers to speculate, prosecutors stated, together with that many had been uninhabitable, lease assortment was burdensome, and that the properties had been usually topic to theft and vandalism. He additionally failed to tell his purchasers that their funding cash can be used for functions aside from their properties, together with paying different traders and shopping for a Harley Davidson for an worker.
The investigation was performed by each the USA Postal Inspection Service and the Kentucky Division of Monetary Establishments.
Hawkins, who was indicted on the fees in October 2021, is scheduled to seem for sentencing on April 24, 2023. He faces as much as 5 years in jail on the funding advisor depend, as much as 20 years in jail on the securities fraud depend, and as much as 20 years in jail on every depend of mail fraud.
Nevertheless, the Court docket should contemplate the U.S. Sentencing Pointers and the relevant federal sentencing statutes earlier than imposing a sentence. Hawkins additionally faces potential fines and a judgment of restitution, as ordered by the Court docket.
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