AG: Embezzlement scheme cheated investors out of $124K
An Oakland County man has pleaded no contest to several felonies in connection with an embezzlement scheme that reportedly defrauded investors out of more than $124,000, the Michigan Attorney General's office announced Friday.
Investigators allege that in 2010, Stanley Alan Williams Jr. invested nearly $200,000 for clients through his purported investment companies, Karmanos Coleman Taubman, Inc. and Pechcoet Management LLC, then embezzled more than half of the money. The clients lost the rest in the market, authorities said.
A state investigation determined neither entity had been properly registered. The attorney general's Financial Crimes Division stepped in after Williams ignored a cease and desist order from the Michigan Department of Licensing and Regulatory Affairs, officials reported.
The 41-year-old Auburn Hills resident was later charged with:
• Two felony counts of embezzlement by an agent, which carries a maximum sentence of 15 years in prison, a $25,000 fine or both.
• One felony count of larceny by conversion, which carries a maximum sentence of five years in prison, a $10,000 fine or three times the value of the property, whichever is greater.
• Three felony counts of securities fraud, which carries a maximum sentence of five years in prison, a $500,000 fine or both.
• Two felony counts of using a computer to commit a crime, which carries a maximum sentence of 10 years in prison, a $10,000 fine or both.
“Michiganders investing for the future shouldn’t have to think twice about who they trust with their hard-earned money,” Michigan Attorney General Dana Nessel said. “My office is steadfast in its commitment to hold those who defraud our state residents accountable.”
Williams made his plea Monday before Oakland County Circuit Court Judge Cheryl Matthews. The Auburn Hills resident is scheduled to be sentenced at 1:30 p.m. July 22.