Edward Lee Moody (IARD# 116475) is an investment advisor based in Virginia Beach, Virginia. Most recently, Mr. Moody was associated with CM Capital Management. Notably, CM Capital Management is an investment advisory firm that is wholly owned and operated by this individual.
On July 3rd, 2018, the Securities and Exchange Commission (SEC) announced investment fraud charges against Edward Lee Moody. Investigators are now alleging that this advisor operated a $5 million Ponzi scheme through his company CM Capital Management. Federal regulators also announced that they have placed a freeze on Mr. Moody’s assets.
SEC Complaint: Edward Lee Moody’s Investment Firm Was a Ponzi Scheme
According to the complaint filed by the SEC in the United States District Court for the Eastern District of Virginia, Edward Lee Moody operated a $4.95 million Ponzi scheme. He defrauded at least 60 different investors, many of whom were elderly or otherwise vulnerable.
The SEC contends that Mr. Moody represented to investors that he operated a successful investment advisory firm (CM Capital Management, LLC). However, in reality, the gains he was showing to his clients existed only on paper. The SEC believes that Mr. Moody sent investors monthly account statements that were wholly false and that he repaid early investors with the money of new investors.
In fact, the evidence suggests that no investor money was ever used for its stated purposes. Instead, all investor money was shuffled around and siphoned off to fund Mr. Moody’s personal expenses. Mr. Moody used investor money to fund his own stock trading and to support his luxurious lifestyle.
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At Sonn Law Group, we are proud to fight for the rights of investors. If you or a family member was the victim of a Ponzi scheme or any other type of financial advisor fraud, please do not hesitate to contact our law office for a free consultation.
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