A former San Fernando Valley investment adviser was scheduled to appear in Los Angeles federal court Thursday on charges of scamming investors of $3.75 million.
David Williams, 52, is alleged in a federal indictment issued Wednesday of using the money for his home in Toluca Lake, to pay school tuition for his children, family vacations, and clothing and jewelry. He is charged with eight counts of wire fraud and two counts of tax evasion.
Williams operated WGF Holdings Inc., Williams Financial Group LLC and Sherwood Secured Investment Fund LLC in Studio City.
According to the indictment, between July 2007 and March 2008, Williams told more than 60 investors that money put into Sherwood Secured Investment Fund would go toward real estate investments.
Williams instead used the money on his lavish lifestyle and to pay business expenses associated with his broker-dealer firm, Morgan Peabody, according to the indictment.
Morgan Peabody closed in October 2008.
Williams could serve as long as 180 years in federal prison if convicted of the charges.
In 2009, the U.S. Securities and Exchange Commission filed a complaint against Williams for violation of securities laws. A class action lawsuit was filed against Williams, Morgan Peabody and WGF Holdings Inc. on behalf of investors and settled in 2010 for $1.1 million.