Former Investment Adviser Pleads Guilty to $6 Million Fraud
NORFOLK, Va. – A former investment adviser in Chesapeake pleaded guilty yesterday to one count of investment adviser fraud and one count of conducting unlawful monetary transactions.
According to the statement of facts filed with the plea agreement, Roger Odell Hudspeth II, 48, was an investment adviser and sole owner of Dominion Investment Advisors, LLC. Hudspeth, along with other associates, sold fraudulent, unregistered securities to his clients. Hudspeth performed inadequate due diligence into the fraudulent investment offerings and concealed that the offerings were created, offered, and controlled by his associate, who previously had been banned by the Financial Industry Regulatory Authority (“FINRA”) for fraudulent activities.
As part of the scheme, Hudspeth and others held social security maximization seminars to obtain clients who were often in or near retirement. Hudspeth steered investors to investment offerings that were highly speculative, illiquid, and high risk by making material misrepresentations and omissions. Hudspeth’s clients lost over $6,000,000 as a result of the securities fraud scheme, and Hudspeth received over $700,000 in ill-gotten gains, including $20,000 that he used to put a down payment on a Range Rover.
In early 2016, the Virginia State Corporation Commission entered a judgment order against Hudspeth revoking his licenses, permanently closing Dominion Investment Advisors, LLC, and prohibiting Hudspeth from engaging in any investment advisory activities in the future.
Hudspeth faces a maximum penalty of 15 years in prison when sentenced on January 22, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorneys Melissa E. O’Boyle and Elizabeth M. Yusi are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-122.