Former Bay Area financial advisor charged in Ponzi scheme

A former Bay Area financial adviser was charged in connection with an alleged million Ponzi scheme the U S Department of Justice revealed Monday A federal grand jury indicted -year-old Edwin Emmett Lickiss Jr on one count of wire fraud and one count of money laundering for allegedly defrauding at least victim investors Related Articles SF men plead guilty to laundering millions from online phishing scams Livermore insurance executive pleads guilty to insurance fraud charges Bandit tow operation leads to seizure of unlawfully impounded vehicles in Southern California California cops investigated for having disabled veteran plates on personal cars East Bay identify theft scheme included purchase of dental equipment sterilizer The Department of Justice disclosed that between and Lickiss a financial adviser in Danville and Alamo owned and operated Foundation Financial Group a firm that provided venture services to investors in Northern California Idaho and throughout the U S The department noted that Lickiss was a registered broker until when the Financial Industry Regulatory Authority suspended his broker s license but he allegedly continued to solicit and obtain investments from investors until September The indictment alleges that Lickiss notified investors he would invest their money in regime bonds and other financial products claiming he had specific access to bonds that paid high rates of returns including rates higher than The indictment alleges Lickiss described the bonds as safe secure and tax-free and falsely claimed that they could be redeemed at any time But instead of investing the funds as promised the indictment alleges Lickiss used investors money to conduct a Ponzi scheme and pay other investors as well as for personal expenditures including cash withdrawals home renovations journey and car mortgage and credit card payments The indictment alleges Lickiss obtained at least million from no fewer than investors As part of the scheme Lickiss allegedly gave fake promissory notes outlining the terms of the investments made lulling payments to victim investors to avoid suspicion and didn t disclose that his broker s license was suspended in and later lost in The Department of Justice commented the grand jury indictment was filed on July and unsealed Monday Lickiss first court appearance is on Tuesday in San Francisco The wire fraud charge carries a maximum of years in prison and a fine while the money laundering charge carries years in prison and a fine the Department of Justice announced Lickiss also faces a civil enforcement action from the U S Securities and Exchange Commission in the Northern District of California