SEC Charges South Florida Resident and His Company for Alleged Investment Scheme…

What the source reports

The Securities and Exchange Commission today charged CMI Capital LLC and its founder and manager, Michael D.

Williams, for an alleged fraudulent investment scheme that raised approximately $860,000 from at least 18 investors, many of whom are current or retired law enforcement officers in South Florida.

The defendants have agreed to a bifurcated settlement in connection with the charges and subject to court approval.

According to the SEC’s complaint, from at least October 2023 through August 2024, Williams, of Port St.

Lucie, Florida, made numerous false and misleading statements in order to convince clients to invest in two funds that he controlled.

The investors, many of whom trusted Williams because he worked for a third-party police and firefighter pension plan administrator, were allegedly told that one of the funds had a portfolio value of more than $5 million and achieved returns exceeding 140 percent.

“We allege that one of the tactics the defendants used to trick investors was to send them cropped screenshots of graphics that showed exorbitant trading profits,” said Stephanie N.

Moot, Director of the SEC’s Miami Regional Office.

“We strongly urge all investors to use caution when entrusting their funds to others and to be wary of anyone promising high returns with little to no risk.

”

Williams allegedly misappropriated approximately $384,000 of investor and client funds to pay for personal expenses, including credit card balances, a sports car, and vacations.

According to the complaint, Williams began repaying certain investors in August 2024 and has repaid more than $375,000 to certain investors.

The SEC’s complaint, filed in the U.

District Court for the Southern District of Florida, charges Williams and CMI Capital, which is also known to do business as Check Mate Investments, with violating antifraud and registration provisions of the Securities Act of 1933 and antifraud provisions of the Securities Exchange Act of 1934 and Investment Advisers Act of 1940.

Without admitting the allegations in the complaint, the defendants consented to the entry of judgments, subject to court approval, that would permanently enjoin them from violating the charged provisions of the federal securities laws and further enjoin Williams from participating in the issuance, purchase, offer, or sale of any security except for certain transactions in his personal accounts.

The proposed judgments further provide that the Court shall order disgorgement with prejudgment interest against Williams and civil penalties against the defendants in amounts to be determined by the Court.

Williams also agreed to a forthcoming associational bar against him.

Last Reviewed or Updated: Sept.

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