Virginia Beach investment company owner facing federal charges for $20 million fraud scheme


Courtesy of St. Lucie County Sheriff's office
Daryl Gene Bank, seen after being arrested in Port St. Lucie, Fl. on Aug. 24, 2017.

 

For Daryl Gene Bank, a self-described financial guru and best-selling author who graduated from a Chesapeake high school, the troubles were piling up. He had been banned from working as an investment broker. State regulators had claimed that he defrauded investors out of $21 million. And he had agreed to pay any “ill-gotten gains” in a federal complaint brought by the Securities and Exchange Commission.

Despite all that, Bank convened conference calls with investors last month to assure them that their investments were sound.

They weren’t, according to a grand jury indictment released Thursday after federal agents arrested Bank and an associate on criminal charges of fraud.

Bank, 47, a former Virginia Beach investment company owner and financial radio show host, and Raeann Gibson, 45, the director of operations and part owner of Bank’s Dominion Investment Group, have been accused of promising large returns to hundreds of investors but using much of what was invested to pay themselves or early investors.

In all, the indictment claims, the two lied to about 300 investors who lost more than $20 million.

Attorneys for Bank and Gibson did not immediately return calls seeking comment.

Bank co-hosted the syndicated talk show “Daryl & the Bull,” which offered financial advice and appeared to be carried in at least 11 states, including Virginia. His Dominion-related companies sponsored the show, which aired Saturdays on AM 1650 in Hampton Roads until mid-2016.

The indictment claims that beginning in 2012 investors thought they were buying $25,000 franchises for a chain of dentist offices called Dental Support Plus that never opened and was shuttered by 2014, as well as securities in Federal Communications Commission cellular spectrum licenses. Much of the money was diverted to accounts under Bank’s control or paid to early investors to make it appear as if the investment was solid, according to the indictment.

The document claims that one of Gibson’s family members, an early investor, was “one of the very few” to receive a full refund plus $5,000 for a franchise.

Two days before Christmas in 2013, Bank used $55,493 of investor funds to pay a personal American Express credit card bill, according to the indictment. In October 2015, he used another $111,458 for the same purpose, it claims. Bank and Gibson used $58,650 of investor money to buy diamonds in 2013, according to federal prosecutors.

The pair has been charged with 15 counts of conspiracy to commit mail and wire fraud, mail and wire fraud and engaging in unlawful monetary transactions.

If convicted, Bank faces up to 260 years in prison. Gibson would face up to 240 years.

Bank could be forced to forfeit $3.8 million, while Gibson could need to give up $483,600, according to the indictment.

Both could also be forced to give up real estate in Florida and a mobile home park in Elizabeth City, N.C., as well as a 2011 Land Rover, a 2012 BMW 535i, bank accounts, a 5-karat diamond ring, any diamonds Bank bought between January 2015 and February 2016, and $325,840 in an account with a diamond supplier.

Federal prosecutors charged a partner of Bank’s earlier this month. Roger Odell Hudspeth II, who owned Dominion Investment Advisors LLC, with offices in Norfolk and Virginia Beach, is expected to plead guilty to charges of investment adviser fraud and unlawful monetary transactions.

Virginia’s State Corporation Commission case against Bank and Gibson is scheduled to begin Sept. 25, but a hearing examiner was already considering a request to continue it and the federal indictment is likely to affect the timing of the state proceeding.

 

Article From:- https://pilotonline.com

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