Bruce Alexander Gwyn of Metairie, Lousiana and James Anthony Ghio of Fairhope, Alabama were arrested on charges of fraud and illegal sales, the Alabama Securities Commission announced. The indictment alleges that they offered or sold securities described as limited partnership interests in Level III Trading Partners LP to an Alabama resident.
The indictment further accuses that Gwyn used the victim’s cash to pay off other investors, failed to use the money as he claimed he would, or made unauthorized investments. Gywn then lied about his use of the money to the victim. Gwyn is additionally alleged to have lied to investors, telling them that they would be provided with yearly financial statements and monthly progress reports.
The duo was indicted by a Baldwin Count grand jury in August.
Gwyn was charged with one count of sale of unregistered securities, one count of sale of securities by an unregistered investment adviser, and three counts of fraud in connection with the sales of securities. The fraud charges claim that Gwyn made false statements of material fact or omitting to state a material fact and employing a device, scheme, or artifice to defraud.
Ghio was charged with one count of sale of securities by an unregistered agent.
Ghio was arrested on September 12, and Gwyn turned himself in on September 18. Each has been released from the Baldwin County Jail on a $20,000 bond and was required to give up his passport.
The securities registration charges are Class C felonies, punishable from one year and a day to ten years in prison plus a $15,000 fine per charge if convicted. The fraud charges are Class B felonies, punishable from two to twenty years plus a $30,000 fine per charge if convicted.
The Alabama Securities Commission made the following statement:
“The ASC cautions potential investors to thoroughly scrutinize and research any investment opportunity or offer. Contact the ASC with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, registration status of securities or debt management programs, to report suspected fraud or to obtain consumer information. The ASC provides free investor education and fraud prevention materials in print, on our website and through educational presentations upon request.”
If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.