The former Chief Financial Officer (CFO) of a Dallas-based company, EarthWater Limited, has pleaded guilty to 22 charges related to a multimillion-dollar, high-yield investment fraud scheme that targeted elderly victims. A 67-year-old individual who sold EarthWater securities has also pleaded guilty to conspiracy to commit mail and wire fraud.
During 2013-19, the CFO of EarthWater and a salesperson of EarthWater securities defrauded individuals in the US, the UK, and Canada by convincing them to invest in EarthWater. They falsely promised the investors that their investment would significantly increase in value in the immediate future.
Moreover, the guilty fraudulently misrepresented to investors that the majority of their funds would be used to support EarthWater’s operations. In reality, the funds were used to pay large commissions to the participants of the scheme. The former CFO was also involved in laundering the investor funds obtained from the fraud scheme. Source: US Department of Justice