Former FA Gets 12 Years Jail Time for Ponzi Scheme
A former financial advisor and host of a financial radio program has received a 12-year prison sentence in a Texas court for stealing $6 million from investors, Law360.com writes.
Bobby Eugene Guess, who hosted a radio show called “Dollars & Sense,” pleaded guilty in May to first-degree felony securities fraud and was sentenced July 3 in Collin County District Court in Texas, according to the legal news website. Guess had defrauded more than 60 investors between November 2014 and August 2016 by selling them promissory notes, investment contracts and stock certificates valued at up to $567,500 in an internet advertising company, according to a December 2016 indictment cited by Law360.com.
The company didn’t have a lucrative media patent, as it had claimed, and it had made no real sales nor revenue. Instead money raised went toward paying earlier investors and to cover Guess and his partner’s personal expenses, according to the website.
Meanwhile, Guess’s company, Texas First Financial LLC, wasn’t registered to sell securities during the length of the scheme, and Guess hid from investors the fact that a primary sales agent for the firm had spent a year in jail for failing to file a tax return, according to the indictment cited by Law360.com.
Guess also continued selling unregistered securities, even though he wasn’t registered as an investment advisor — and even after learning that he was under investigation by the U.S. Secret Service for money laundering, among other charges, according to the indictment cited by the legal news website.
Guess began his financial services career in 1984 and worked at a half a dozen firms before being discharged in 2011 from Five Star Wealth Management, which is no longer in business, for violating its policies and Finra and SEC regulations, among other allegations, according to Guess’s BrokerCheck profile.
He never registered with another firm, according to BrokerCheck.
Timothy Lloyd Booth, Guess’s partner in the scheme and accused of stealing $23 million, received a 68-year prison sentence in May, according to a Texas State Securities Board announcement cited by Law360.com.
The website could not reach Guess’s representatives nor the district attorney’s office for comment.