Federal indictment charges CPA with securities fraud | USAO-WDNC

CHARLOTTE, North Carolina — A federal grand jury sitting in Charlotte has returned a criminal indictment charging Mac Wayne Billings, 48, of Raleigh, North Carolina, with securities fraud, for defrauding at least 19 victims over $3.6 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins U.S. Attorney King in making today’s announcement.

According to the allegations in the indictment, between 2012 and 2019, Billings engaged in securities fraud through his company, Alpha Finance Company (ALPHA), located in Sparta, North Carolina. North. The indictment alleges Billings fraudulently obtained more than $3.6 million from at least 19 victims in Alleghany, Wilkes and Surry counties, soliciting them to invest in ALPHA through ‘bonds’ . A bond note is a type of debt instrument that is generally not backed by collateral. As alleged in the indictment, Billings, who is a licensed CPA in North Carolina, falsely promised ALPHA victim-investors that their money would be used to make high-interest consumer loans. on which investors would receive interest payments. Contrary to its promises, Billings used little, if any, investor funds to make new consumer loans. Instead, Billings used some of the investors’ money to make payments to other investors and to pay himself more than $1 million in salary and distributions from ALPHA.

The indictment further alleges that Billings used investment statements, emails and meetings to mislead and deceive victim-investors into believing that ALPHA was a profitable business and that the victims’ investments were safe. In this regard, Billings allegedly failed to disclose material information regarding ALPHA’s financial and business problems to victim-investors, including that he had sold or mortgaged most of ALPHA’s assets to money lenders. Based on the fraudulent information provided by Billings, many victim-investors renewed and/or made additional investments with ALPHA, causing them to suffer additional financial losses.

Finally, lawsuits filed by the North Carolina Banking Commissioner (NCCOB) and the North Carolina Attorney General’s Office alleged that Billings failed to comply with North Carolina laws governing consumer credit and retail installment loans. Billings defaulted in those lawsuits. Consequently, the NCCOB revoked ALPHA’s license due to non-compliance with the North Carolina Consumer Finance Act. Courts in Alleghany and Wake counties declared ALPHA’s loan null and void, leaving the victim-investors with no assets to recoup their losses.

The charges in the indictment are allegations and the accused is innocent until proven guilty beyond a reasonable doubt in court.

The securities fraud charge carries a maximum prison sentence of 20 years and a fine of $5 million. Billings’ initial appearance will be scheduled in federal court in Charlotte.

In making today’s announcement, U.S. Attorney King commended the FBI for its investigation of the case and thanked the U.S. Securities and Exchange Commission, the North Carolina Banking Commissioner and the North Carolina Attorney General’s Office for their cooperation.

Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is pursuing the case.

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