SEC: Wilmington financial advisor ran Ponzi scheme that resulted in more than $2 million in losses
WILMINGTON, N.C. (WECT) - A financial advisor in Wilmington is accused of running a “Ponzi scheme” that resulted in the loss of millions for his investors, according to a complaint filed by the Securities and Exchange Commission.
The complaint states that Shawn E. Good defrauded clients, including retirees and a single mother of young children, of at least $4.8 million, resulting in more than $2 million in losses.
Good was reportedly terminated by Morgan Stanley Smith Barney, LLC on Feb. 14 for refusing to cooperate with an internal review.
According to the complaint, from December 2012 through at least February 2022, Good is accused of soliciting clients to transfer funds to his personal bank account “ostensibly to make low-risk investments in real-estate development projects and supposedly tax-free government bonds.”
The SEC claims that he instead used those funds to repay other investors as well as for his personal expenses, including:
- $13,000 in payments toward his Tesla
- more than $800,000 in credit card bills
- $110,000 in Venmo payments
A single mother lost $1,325,000 in assets while her mother lost as least $933,750.
The SEC is seeking a temporary restraining order, preliminary and permanent injunctive relief, disgorgement of ill-gotten gains and a civil penalty.
It also seeks a conduct-based injunction that would prevent Good from participating in the “issuance, purchase, offer or sale of any security.” The injunction would not prevent him from purchasing and selling securities for his own personal accounts.
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