Leadership and Companies
SEC Charges Florida Firm Over Alleged $860,000 Investor Fraud
The SEC accused CMI Capital and Michael Williams of misleading at least 18 investors and misusing approximately $384,000.
What happened
The Securities and Exchange Commission charged CMI Capital LLC and its founder and manager, Michael D. Williams, over an alleged investment scheme that raised approximately $860,000 from at least 18 investors, many current or retired South Florida law enforcement officers. From October 2023 through August 2024, the SEC says Williams promoted two controlled funds using false claims, including that one had more than $5 million in assets and returns above 140%. He allegedly diverted about $384,000 for personal expenses, including credit cards, a sports car and vacations. Williams has repaid more than $375,000 to certain investors. The defendants agreed to a settlement subject to court approval.
Why it matters
The alleged scheme involved investor funds used for personal spending, while proposed court orders would seek disgorgement, penalties and restrictions on Williams’s securities activity. The case remains subject to court approval.
Source: U.S. SEC Press Releases