A 28-count indictment against the former owners of Lafayette-based Bowman
Investment Group was unsealed on Friday by the U.S. Attorneys Office.
The indictment, which was sealed in August, accuses Richard J. Buswell
and Herbert S. Fouke (a/k/a Steve Fouke) of cheating over 100 investors
out of more than $8 million in an alleged investment scheme that ran from
the beginning of 2007 through 2009.
According to prosecutors, Buswell and Fouke, both licensed stockbrokers
in Lafayette, Louisiana, solicited investments in Bowman Investment Group
in order to generate commissions and wages for themselves. They allegedly
defrauded investors through
misrepresentations, false pretenses, and false promises, including lying about when and how
commissions would be charged.
The indictment alleges that Fouke, a former general contractor, recruited
investors from his circle of acquaintances. Then, once investors had handed
over their funds, Buswell allegedly engaged in "churning" and
unauthorized trading to generate large commissions for the two defendants "without regard
for the needs and objectives of his clients."
Both men were charged with one count of securities fraud, one count of
investment adviser fraud, and one count of conspiracy. Buswell was also
charged with eight counts of wire fraud and 15 counts of mail fraud. Both
men were released on bonds.