To effectuate investments, Good caused some clients to obtain a liquid asset line of credit (LAL) secured by their Morgan Stanley investment or retirement accounts. Good directed clients to transfer the LAL funds to their personal bank accounts and then wire the funds directly to Good’s own personal bank account. "The IRS is actively pursuing promoters as well as investors who knowingly participate in these types of tax avoidance schemes." “Investment schemes that seem too good to be true should be a signal to investors to stay clear," Eakins said. He solicited investments from business clients and others for purported real estate projects and tax-free municipal bonds, touting these opportunities as low-risk investments that would pay returns of between 6% and 10% over three- or six-month terms.ĭonald “Trey” Eakins, from the IRS Criminal Investigation, Charlotte Field Office, said the IRS uses all its investigative tools to uncover abusive tax schemes that misappropriate client funds for personal gain by advisers and brokers. Previous coverage: Wilmington man sentenced for role in decade-long Ponzi schemeĪccording to officials, from 2012 to February 2022, Good executed a scheme to obtain money through an investment fraud commonly known as a Ponzi scheme. To lend credibility to the Ponzi scheme and to elude detection, Good also used a portion of investor funds to make payments to earlier investors. Instead of investing in land development or bonds, Good used the money for personal expenditures including his Wilmington residence a condominium in Florida luxury vehicles including a Mercedes Benz, a Porsche Boxster, a Tesla Model 3, an Alpha Romeo Stelvio, and a Lexus RX350 fine dining and vacations to Paris Cinca Terra, Italy Jackson, Wyoming Las Vegas and other destinations.
Now he will spend the next seven-plus years in federal prison.”Īt least 12 victims invested more than $7.24 million based on false statements and misrepresentations made by Good. Faced with a choice between right and wrong, Mr. His scheme has finally come to an end thanks to the unshakable courage of the victims and the hard work of law enforcement at the IRS and the SBI. "He did it out of pure greed, to fuel his lavish lifestyle – purchasing luxury cars, exotic vacations and real estate. “Shawn Good robbed the savings and retirements of clients who trusted him – including a widow, a single mom, and a retired police officer," Easley said. Attorney Toby Lathan served as the prosecutor.
State Bureau of Investigation Financial Crimes Unit investigated the case and Assistant U.S. Internal Revenue Service Criminal Investigation and the N.C. Good was employed as a registered representative and investment adviser for Morgan Stanley Smith Barney, LLC in Wilmington. Attorney Michael Easley said Good was a financial predator who used his role as an investment adviser to take advantage of more than a dozen clients. In September 2022, he pleaded guilty to wire fraud and money laundering. He was also ordered to pay $3.61 million in restitution to victims by U.S.
Attorney's Office, Eastern District of North Carolina, Shawn Edward Good of Wilmington was sentenced to serve more than seven years followed by three years of supervised release. A former Wilmington financial adviser was ordered to serve time in prison for running a decade-long Ponzi scheme that took more than $7 million from clients.Īccording to a news release from the U.S.
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