Former Bay Area financial advisor accused of running $9.5M Ponzi scheme
A former Bay Area financial advisor was charged in connection with a $9.5 million Ponzi scheme, the United States Department of Justice said on Monday.
The as 77-year-old Edwin Emmett Lickiss, Jr., and said he operated as a financial advisor from 1998 to September 2024.
Lickiss, who was based in Alamo and Danville, was the owner of Foundation Financial Group and provided services in the Northern District of California, Idaho and throughout the U.S, the DOJ said.
He was a registered broker. But the Financial Industry Regulatory Authority suspended his license in 2014, and he eventually lost the license in 2016, according to the DOJ. However, he kept soliciting and accepting investments, the DOJ said.
He allegedly told investors that their money would be used for government bonds and claimed he had exclusive access to bonds that had rates of return even higher than 20%, the DOJ said. Lickiss is accused of making up the bonds, describing them as "safe, secure, and tax-free" and saying that they could be redeemed at any time, the DOJ said.
As part of the Ponzi scheme, Lickiss allegedly gave fake promissory notes, made lulling payments to victim investors, and didn't disclose that his broker's license was suspended and that he eventually lost it, the DOJ said.
The money Lickiss obtained was used for home renovations, travel, car, mortgage and credit card payments, and paying earlier investors, the DOJ alleges.
The DOJ said the grand jury indictment was filed on July 17 and unsealed on Monday. He faces one count of wire fraud and one count of money laundering. His first court appearance is on Tuesday in San Francisco.
The wire count charge carries a maximum of 20 years in prison and $250,000 fine, and the money laundering charge carries 10 years in prison and a $250,000 fine, the DOJ said.
Lickiss also faces a civil enforcement action from the U.S. Securities and Exchange Commission in the Northern District of California.
