SEC Charges Former Georgia Investment Adviser in Multipart Offering Fraud

The Securities and Exchange Commission (SEC) has lodged charges against Michael Wayne Williams, a former Georgia-registered investment adviser now based in Miami, Florida. Two of his controlled entities, Highguard Capital, LP, and Guardian Opportunity Management, LP, are also charged for their role in a complex investment fraud scheme.

The SEC’s lawsuit asserts that between February 2016 and July 2017, Williams and Highguard Capital secured over $1.8 million from investors by selling securities interests in Guardian Opportunity Management. Williams had promoted this as the investment manager for Guardian Opportunity Fund, a new private fund he was initiating. Contrary to his claims, the SEC alleges that Williams misappropriated a significant amount of the invested funds to settle investors in three previous funds he was winding up. The lawsuit also alleges that Williams, along with Guardian Opportunity Management, solicited and amassed a minimum of $16 million from investors by showing them fabricated performance returns from March 2016 to at least October 2022. Lastly, the lawsuit alleges that in February 2021, Williams and Highguard Capital deceptively sold over $1 million worth of securities interests in Guardian Opportunity Management to a woman from Mississippi. Despite his claim that her funds would be utilized to expand the Guardian Opportunity Fund, Williams is alleged to have redirected her money to repay earlier investors in Guardian Opportunity Management.

Filed in the United States District Court for the Northern District of Georgia, the complaint charges Williams, Highguard Capital, and Guardian Opportunity Management with violation of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Additional charges against Williams and Guardian Opportunity Management include violation of Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties against each defendant.

The SEC’s investigation was carried out by Elizabeth P. Skola, Micheal D. Watson, and Tiffany B. Kunkle, supervised by Stephen E. Donahue and Justin C. Jeffries from the Atlanta Regional Office. The investigation was also supported by Terrence Moran from the Division of Examinations in the Chicago Regional Office, and Howard Kaplan and Brian Shute from the Enforcement Division’s Office of Investigative and Market Analytics. The litigation will be managed by Paul Kim and overseen by M. Graham Loomis. Litigation proceedings remain pending for all parties involved.