John Robert Graves and Sara Turberville Graves, both of Fredericksburg,
Va., were indicted last week on multiple fraud charges in connection to
an alleged $1.3 million investment fraud scheme that authorities say ran
from mid-2008 through mid-2011.
According to the indictment, John Graves, founder and president of Brook
Point Management (BPM), and his wife, Sara, raised over a million dollars
in investor funds through the
misrepresentation and omission of material facts, including facts about the nature of the
Authorities further accuse the couple of lying to investors by telling
them the funds would be used to invest in a "startup company"
and to buy shares of BPM, among other things. Instead, the Graves allegedly
used the money for personal purposes, including: to pay credit card bills,
to purchase real estate, and to make payments to some investors.
Graves, a certified financial planner, a holder of numerous industry registrations,
and an ex-FBI agent, allegedly used his credentials and former FBI experience
to gain his clients' trust and convince them to invest with him. Authorities
claim he continued to make false and/or misleading statements about the
fraud scheme even after it was uncovered.
John and Sara Graves have each been charged with one count of conspiracy
to commit mail and wire fraud, one count of mail fraud, and four counts
of wire fraud, according to the DOJ press release. John Graves was also
charged with three counts of Investment Adviser Act fraud, and one count
of making false statements.