A former financial advisor, who was accused of operating a long-running Ponzi scheme with former clients, has now pleaded guilty to criminal charges.
Last July, the U.S. Securities and Exchange Commission (SEC) alleged that former advisor, Edwin Emmett Lickiss, Jr., ran a Ponzi scheme for over 25 years that took US$12.7 million from clients through the sale of promissory notes that pledged to deliver guaranteed returns by investing in tax-free bonds.
In fact, the investment was a Ponzi scheme, which used money from new investors to pay returns to earlier investors, the SEC alleged — and, a portion of the funds was diverted for personal use, it alleged.
Alongside the SEC’s charges, Lickiss was also charged criminally by the U.S. attorney’s office for the Northern District of California — which announced that he has now pleaded guilty in federal court to one count of wire fraud and one count of money laundering in connection with the alleged scheme.
Lickiss was released pending sentencing, which is scheduled for August 28.