Charlotte businessman ran $7 million Ponzi scheme, SEC alleges

A Charlotte businessman has been charged with operating a $7 million Ponzi plan and defrauding dozens of regional investors to fund his “lavish life-style,” the Securities and Trade Commission said in new courtroom paperwork.

Wynn Charlebois, a “self-proclaimed organization guide,” defrauded at the very least 75 buyers out of tens of millions of dollars through his firm, WC Private LLC, and “multiple bogus investment decision chances,” the company mentioned in a information launch Friday.

The SEC submitted an crisis action in U.S. District Court docket for the Western District of N.C. on Thursday looking for injunctions to prevent Securities Act violations, amongst other requests.

“This is a serious litigation make a difference that I glimpse ahead to resolving,” Charlebois advised The Charlotte Observer through textual content information Friday. “Until then, no get-togethers will be served properly by speaking about it at this time.”

Revenue from the alleged plan went to a variety of Charlebois’ personalized expenses, the SEC explained in its court submitting, from covering college tuition for one of his youngsters to limo service expenditures and a remain at the Ritz Carlton in the mountain village of Beaver Creek, Colorado, in the course of a family members getaway.

How the alleged plan worked

In court submitting, the SEC alleged that Charlebois made use of his social cash in Charlotte and network of former co-personnel from an investment decision financial institution he worked at many years back to solicit traders.

Charlebois available traders an option to share in the profits earned by means of participation in fictitious choices contracts, the SEC explained in its information release.

He explained to prospective traders that he was a very effective investor who experienced previously served as a guide for personal businesses, court files allege.

The SEC documents say Charlebois explained to traders he had received stock choices from these firms to acquire shares in all those corporations, and could do so at a cost that would result in an immediate obtain for investors.

But those people corporations experienced never issued the inventory solutions to Charlebois, the SEC explained to the court docket, and the buy agreements were being fabricated.

“The cash Charlebois acquired from investors had been not invested as he reported they would be, and he experienced no cash flow stream from anything other than the income he been given from new traders, financial loans from own pals, and service provider money advance loans,” the SEC lawyers claimed.

Spending for personalized fees

SEC attorneys allege that Charlebois utilised trader resources to spend other traders as effectively as family members money owed and personalized expenditures like house loan payments, vacations and personal education for his young children.

Those bills included almost $11,000 in airfare charges in 2021, the SEC explained in courtroom paperwork, and a January 2021 relatives excursion to Colorado. Which is in which Charlebois used above $3,400 in 4 days “at locations these types of as the Ritz Carlton Bachelor Gulch, and various dining establishments and ski locales in the encompassing Beaver Creek and Vail place,” the SEC claimed.

Two months afterwards, in March 2021, the Charlebois relatives used a week vacationing in Boca Grande, Florida, where by they invested $8,792 “despite a adverse balance in Charlebois’ particular joint checking account through the vacation,” the SEC claimed in its court filing.

When buyers raised questions, the SEC alleged, Charlebois engaged in “lulling activity” like saying he was functioning on other time-sensitive company projects or that the transfer of the money was delayed.

Charlebois also “provided fabricated files to (buyers) to induce them to devote money with him and the entities he controlled,” the SEC claimed in courtroom paperwork.

From Feb. 5, 2019, through April 30, 2022, at the very least $7.1 million of investor money flowed into Charlebois’ accounts, of which at the very least $4.4 million was paid to traders, the complaint explained.

The SEC is trying to find an injunction that would completely protect against Charlebois and his LLC from issuing, purchasing, providing or advertising any protection, apart from purchasing or marketing securities for his personal own accounts.

The SEC also requested the court docket to mandate that Charlebois pay civil penalties, as well as freeze belongings and force him to give up “ill-gotten gains,” the SEC claimed in its information release.

The investigation of the circumstance is ongoing, the SEC mentioned.

This story was initially published May perhaps 20, 2022 4:13 PM.