Maryland Wealth Advisor Indicted in Alleged $25M Ponzi Scheme
Rockville, Maryland wealth advisor Garfield M. Taylor has been indicted
on fraud charges related to an alleged
Ponzi scheme that authorities say cost investors nearly $25 million.
According to the seven-count indictment, Taylor allegedly convinced investors
to invest with him by promising large returns. He also allegedly claimed
that he used a sophisticated securities trading strategy that was proven
to protect against loss. Prosecutors, however, say the reality was far
Instead of investing the funds as promised, Taylor allegedly used a substantial
portion of the investors’ funds to make “interest” payments
to earlier investors. He also allegedly never used the trading strategy
he told investors he would use. Any funds he did manage to invest allegedly
made either minimal profits or were lost.
Taylor was one of six people charged with the alleged scheme by the SEC
in 2011. The
SEC’s civil complaint accused Taylor and his co-defendants of defrauding more than 130 investors out of more
than $27 million over the course of five years. According to the complaint,
Taylor and the others promised investors annual returns of around 20%
with little to no risk.
The criminal indictment against Taylor was returned on Feb. 21. It charged
him with wire fraud, securities fraud, and the unlawful sale of unregistered
securities. Taylor pleaded not guilty at his arraignment on Feb. 28, according
to the U.S. Attorney’s Office for the District of Columbia. For
additional information in the
Garfield Taylor investment fraud case, click here.