Milton, Massachusetts Man Barred from Securities Industry after Pleading
Guilty to Criminal Charges of Securities Fraud Over Rare Coins Ponzi Scheme
A Milton investment advisor and broker-dealer was barred from the securities
industry this month after pleading guilty to 16 counts in a criminal securities
On Nov. 29, Arnett L. Waters, of Milton, Mass., pled guilty to seven counts
of securities fraud, six counts of mail fraud, two counts of money laundering,
and one count of obstruction of justice in connection to a large-scale
Ponzi scheme involving rare coins. On Dec. 3, the SEC issued an order
permanently barring Arenett Waters from the securities industry. The order was based on Waters’ guilty plea.
Criminal prosecutors in the case had alleged that Waters fraudulently obtained
millions of dollars from investors by selling coins at inflated prices
over a period of ten years.
“Waters convinced customers to buy coins at prices that, on average, represented
a 600% mark-up from market value of the coins,” wrote the U.S. Attorney’s Office for the District of Massachusetts.
“Waters also induced coin purchasers to return coins to him, on
the false pretense that he would sell those coins on the customers’
behalf. In the case of one victim, who had paid Waters over $7 million
for coins, Waters convinced the victim to pay over half a million dollars
for fees purportedly related to the sale and storage of the coins. In
fact, Waters had already sold most or all of the coins and had used the
proceeds for his own personal and business expenses.”
The charges filed against Waters in criminal court were based largely on
accusations filed against Waters in a May SEC civil lawsuit.
In the suit, the SEC alleged that Waters and two companies under his control,
broker-dealer A.L. Waters Capital, LLC and investment adviser Moneta Management,
LLC, defrauded investors, including his church, over a period of at least
Waters also allegedly misappropriated investor funds and used them for
his personal purposes.
In addition to the SEC’s injunction, Waters faces decades in prison
and millions of dollars in fines for his actions. Sentencing on all criminal
charges is scheduled for April. He has been in police custody since Oct. 2.