A New York man has been sentenced to serve just over four and a half years in prison after carrying out a multimillion-dollar investment fraud scheme, as reported by the U.S. Attorney's Office for the Eastern District of Wisconsin. Charles Lawrence, 50, from Northpoint, deceived investors nationwide and overseas, leading to substantial financial losses amounting to more than $4 million.
Lawrence, an investment adviser with securities licenses dating back to the late '90s, was implicated in a fraudulent scheme through his association with several entities operating under the name "Landes." He promised victims lucrative returns through a "trading program," while using a network of "finders" to add a veneer of credibility to the operation. Finders were promised and paid "finder's fees" for their roles, but the entire scheme was filled with elaborate dishonesty rather than genuine investment insights. According to the Justice Department's announcement, Lawrence misrepresented the safety and profitability of the investments through written communications and a false web portal that purported to show the health of the investments.
This web portal was integral to his scheme—a digital cover for the harsh reality that investors' funds were financing Lawrence’s lavish indulgences. United States District Judge Lynn Adelman said that Lawrence's "lies were brazen" when announcing the sentence. This was "a scam from the very beginning," and it was driven solely by Lawrence's greed, as mentioned in the Justice Department's announcement.
In the wake of the revelation that no real investments were ever made with the nearly $5 million received from victims, Lawrence has been ordered to pay restitution of $4,030,263.51. Notably, a 10.8-carat Cartier ring and a Range Rover purchased with $91,000 of the pilfered funds have been forfeited, serving as a testament to the lavishness of his deceit-fueled lifestyle. U.S. Attorney Gregory J. Haanstad underscored the scheme's devastating impact and praised the collaborative efforts that brought Lawrence to justice.
The Federal Deposit Insurance Corporation Office of Inspector General's Special Agent in Charge, Vince Zehme, remarked on the case's sine qua non—a fabricated bank website that misled victims about the security of their funds. Zehme reiterated the FDIC OIG's commitment to partnering with law enforcement to punish perpetrators of such deceptive schemes. The case against Lawrence resulted from a referral from the Securities and Exchange Commission and was pursued by Assistant United States Attorneys Julie F. Stewart and Farris Martini.
