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An East Cobb funding advisor whom federal authorities say defrauded purchasers out of greater than $25 million has pleaded responsible.
In keeping with the U.S. Lawyer’s Workplace for the Northern District of Georgia in Atlanta, John Woods, 58, pleaded responsible to a single cost of wire fraud and he awaits sentencing.
Woods has been lively highschool sports activities and civic affairs in East Cobb.
In 2021, Woods was accused by the U.S. Securities and Alternate Fee of working a Ponzi scheme by way of his former firm, Southport Capital Threat Administration.
U.S. Lawyer Ryan Buchanan stated in a launch that Woods solicited buyers to put money into a fund referred to as Horizon Non-public Fairness, promising charges of return of six to seven %.
He advised buyers their funds could be invested in authorities bonds, shares and small actual property tasks, based on the discharge, which stated Woods assured buyers could be secure as a result of Horizon had a various portfolio.
However the U.S. Lawyer’s Workplace stated the investments had been used to repay different buyers, saying that Woods misled purchasers “by failing to reveal that the Horizon investments had not generated a constructive share of return adequate to cowl the curiosity.”
Greater than $110 million was invested within the Horizon fund, from 400 buyers in additional than 20 states, federal prosecutors stated.
“Losses are nonetheless being calculated, however buyers have misplaced greater than $25 million due to Woods’s scheme to defraud,” the U.S. Lawyer’s Workplace stated.
“Traders ought to reply with warning to monetary gives that sound too good to be true and are cloaked within the promise of low danger and excessive charges of return,” Buchanan stated within the launch.
Woods was previously on the chief board of the Walton Landing Membership and was a member of the unique East Cobb Cityhood committee in 2019.
He was a minority proprietor of the Chattanooga Lookouts baseball workforce, in his Tennessee hometown, and likewise has been the top of the Associates of Chastain Park Basis in Atlanta.
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