An unregistered advisor with the moniker of “Dr. Money” was sentenced to a few years for fraud, stealing tens of millions in victims’ funds, based on the Justice Division.
Terrence Chalk beforehand pleaded responsible in Could 2024 to funding adviser fraud (although he by no means registered with the Securities and Trade Fee). In line with U.S. Lawyer for the Southern District (and former SEC Chair) Jay Clayton, Chalk exploited “shared ethnic or non secular backgrounds to construct false belief.”
“Defrauding retirees, utilizing the frequent bond of religion to construct belief, is a horrible crime, one which disturbs all New Yorkers,” Clayton stated.
In line with courtroom information, in 2017 Chalk marketed a brand new funding fund utilizing the alias “Terrence Money” or “Dr. Money,” touting himself as “the nation’s No. 1 enterprise, cash and wealth coach,” providing cash administration and training periods the place he would share “the hidden secrets and techniques of the rich” with shoppers.
Chalk would goal aged traders, usually holding wealth seminars at Black church buildings the place he would promote himself as a “man of religion” seeking to assist fellow Christians. After hooking potential shoppers, he’d push them to spend money on the purported “Chairman’s Fund,” which he claimed consisted of a number of pooled investments providing quarterly money funds and excessive returns.
Nonetheless, Chalk used an alias to hide that he had been convicted of fraud in 2006.
In line with a previous grievance from the SEC, Chalk based a pc programs firm. When the enterprise hit arduous occasions, he submitted mortgage and line of credit score functions naming workers and shoppers as guarantors with out their data (even utilizing the identify of a useless relative). He ultimately spent greater than six years in jail.
At first, victims who invested within the “Chairman’s Fund” acquired quarterly funds as scheduled, and a few really useful the fund to family and friends. Nonetheless, by the tip of 2019, most had stopped getting funds, and Chalk falsely claimed that shoppers had promised they wouldn’t divest for 10 years.
Not one of the $4.8 million Chalk raised from about 26 traders was invested. As an alternative, Chalk used the funds to pay different entities Chalk managed and repay earlier traders. He additionally spent about $1.7 million on private bank card payments, $17,000 on NBA season tickets and $74,000 on a BMW.
The DOJ initially charged Chalk in 2020 (when the SEC filed a civil motion). Along with three years in jail, Chalk will serve three years of supervised launch and pay restitution (the quantity of which will probably be set at a later listening to).