Date: 10-11-2024

Case Style:

United States of America v. Charles Lawrence

Case Number: 2:23-cr-00096

Judge: Lynn Adelman

Court: The United States District Court for the Eastern District of Wisconsin (Milwaukee County)

Plaintiff's Attorney: The United States Attorney’s Office in Wisconsin

Defendant's Attorney:

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Description:

Milwaukee, WI criminal defense lawyer represented the Defendant charged with Investment Fraud Scheme
New York Man Sentenced to 54 Months’ Imprisonment for Investment Fraud Scheme

Charles Lawrence, age 50, of Northport, New York, was an investment advisor who held Series 7, 55, and 63 securities licenses from 1996 to 2006. By 2020, Lawrence became associated with various entities using the name “Landes,” including Landes Trust, Landes & Compagnie Trust Prive, and Landes Prive LLC. Lawrence used these entities to solicit money from unsuspecting victims by selling them an opportunity to join a “trading program” that he claimed would net them significant returns. As part of the scheme, Lawrence lured individuals into soliciting investments on his behalf by promising, and paying, “finder’s fees.” He used these unsuspecting “finders” to make himself, and the trading program, appear legitimate. Once a finder located a potential investor, Lawrence sent written communications and contracts that promised that the victims’ initial investment would be segregated in a separate account and would not be at any risk. Lawrence also promised that profits of 50% or more were possible and likely.

After the victims agreed to invest with Lawrence, Lawrence directed them to wire money into a bank account that he controlled. Lawrence also provided his victims a web portal to a Landes bank account on which they could see their initial investment, and provided frequent false updates about how their investment was performing. The web portal, Lawrence’s promises, and his updates were all fraudulent. Lawrence never invested any of the nearly $5,000,000 he received from his victims. Instead, Lawrence spent the money to fund an extravagant lifestyle that included lavish vacations, trips on private jets, spending hundreds of thousands at luxury retailers, and purchasing a 10.8-carat diamond Cartier ring.

In announcing his sentence, United States District Judge Lynn Adelman focused on the sophisticated nature of the scheme, noting that Lawrence’s victims took false comfort in the website where they could see their funds. Judge Adelman noted that Lawrence’s “lies were brazen,” that this was “a scam from the very beginning,” and that Lawrence was motivated solely by greed.

In addition to the 54-month period of incarceration, Lawrence was ordered to pay restitution to his victims in the amount of $4,030,263.51, and to forfeit the 10-carat Cartier ring and a Range Rover he purchased using $91,000 of his victims’ money.

“This scheme had a devastating impact on the victims taken in by Lawrence’s false promises and the elaborate measures he took to convince them that their investments were safe and lucrative,” said U.S. Attorney Haanstad. “I commend the excellent work of all involved in bringing Mr. Lawrence to justice for his actions.”

“The defendant in this case was held accountable for fraudulently obtaining millions of dollars through an investment scam and using those stolen funds to enrich himself, at the expense of unsuspecting victims. The defendant’s lulling activity included the creation of a website purporting to be that of a bank,” Special Agent in Charge Vince Zehme of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) said. “The FDIC OIG remains committed to working with our law enforcement partners to investigate and bring to justice those who participate in fraudulent schemes and threaten to undermine the integrity of our Nation’s banking system.”

The case was referred to the U.S. Attorney’s Office by the Securities and Exchange Commission. It was investigated by the Federal Deposit Insurance Corporation Office of the Inspector General and prosecuted by Assistant United States Attorneys Julie F. Stewart and Farris Martini.

Outcome:

Defendant was found guilty and sentenced to 54 Months’ Imprisonment for Investment Fraud Scheme

Plaintiff's Experts:

Defendant's Experts:

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