The Securities and Exchange Commission (“SEC”) announced on June 16 that Daniel Thibeault (“Thibeault”), a Massachusetts-based investment advisor facing both civil and criminal charges, was sentenced to 9 years in prison for his fraudulent misappropriation of more than $15 million in investor funds. After numerous false statements to the SEC staff during the SEC’s investigation, Thibeault pled guilty to charges of securities fraud, wire fraud, aggravated identity theft, and obstruction of justice. The criminal charges against Thibeault arose out of the same fraudulent conduct alleged in the SEC’s civil complaint.
Thibeault was the President and CEO of numerous investment advisory companies, including GL Capital Partners and GL Beyond Income Fund. The SEC’s complaint alleged that Thibeault used GL Capital Partners to solicit investments in the GL Beyond Income Fund, claiming that investors’ money would be used to purchase variable rate consumer loans. Investors were told that the purchased consumer loans would provide a return on investment when interest and principal payments were made on the loans.
The SEC’s complaint alleged, however, that investor money was never used to purchase the variable rate consumer loans, and that “defendants engaged in a scheme to create fictitious loans to divert investor money…and to report these fake loans as assets of the GL Beyond Income Fund.” The plan was allegedly designed to hide that Thibeault and his associates had misappropriated millions from customers who had been told that they had collectively invested more than $40 million in the GL Beyond Income Fund since 2013.
In addition to 9 years in prison, the Honorable Leo T. Sorokin of the United States District Court for the District of Massachusetts sentenced Thibeault to 3 years of supervised release and restitution of $15.3 million as a result of his fraudulent securities practices. The SEC’s civil action against Thibeault is still pending.
The attorneys at Lax & Neville LLP have extensive experience in successfully prosecuting claims on behalf of customers who have suffered losses as a result of investment and securities fraud. If you are a victim of fraud, please contact Lax & Neville LLP today at (212) 696-1999 to schedule a consultation.