On Thursday, it was announced that the former owner of a Virginia Beach investment company was arrested for his alleged role in an investment fraud scheme, which resulted in the loss of at least $20 million. 47-year-old Daryl Gene Bank of Port St. Lucie, Florida and 45-year-old Raeann Gibson of Palm City, Florida previously resided in Virginia Beach. Both defendants have been charged with conspiracy to commit mail and wire fraud, mail and wire fraud, and engaging in unlawful monetary transactions.
Allegations in the indictment suggests that Bank created and operated dozens of limited liability companies in Virginia. The companies included Dominion Investment Group and Dominion Private Client Group. Offices were located in Port St. Lucie and Virginia Beach.
The indictment alleges that the two defendants were involved in a conspiracy to carry out numerous investment fraud schemes from January of 2012 to July of 2017. In one case, Bank is accused of making several material misrepresentations and omissions to investors. One investor, who is being identified as BC, was blind and in his late 70s when he invested $20,000 of his retirement funds with the investment fraud called Prime Spectrum.
The defendants are accused of misappropriating 70 percent of BC’s funds, before sending BC a statement giving him the impression that his funds were fully invested in Prime Spectrum. During the course of the alleged schemes, the defendants are accused of preparing materially false and misleading investment offerings and omitting information to at least 300 investors. Ultimately, victims of the fraud lost at least $20 million combined.
In 2015, the Securities and Exchange Commission filed a civil complaint against Daryl Gene Bank and his entities. At the time, he was accused of running a multi-million dollar scheme to defraud investors. During the same year, the Virginia State Corporation Commission filed a civil enforcement action against both defendants enjoining them from the fraudulent sale of unregistered securities. At this point in time, Bank faces a maximum penalty of 260 years in prison, if convicted. Gibson could face 240 years in prison, if convicted.
Both defendants are innocent until proven guilty in a court of law. Those that believe they may have fallen victim to the defendants are urged to call the FBI’s Norfolk Field Office at 757-609-2514.