Ex-FBI-Agent-Turned-Financial-Advisor and Wife Charged with $1.3M Investment Fraud
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 investments.
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.