Former Owners of Bowman Investment Group Indicted on 28 Counts
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.