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Former Broker Indicted for $9.7M Ponzi Scheme Involving Fake Bond Investments

Posted on August 25th, 2025 at 2:30 PM
Former Broker Indicted for $9.7M Ponzi Scheme Involving Fake Bond Investments

From the desk of Jim Eccleston at 麻花传媒

Federal authorities have indicted former securities broker Edwin Emmett Lickiss Jr., 77, on wire fraud and money laundering charges for allegedly orchestrating a $9.5 million Ponzi scheme involving at least 50 investors.

ThinkAdvisor reports that Lickiss continued soliciting investors through Foundation Financial Group even after the Financial Industry Regulatory Authority (FINRA) suspended his license in 2014 for failing to report tax liens. He ultimately lost his broker’s license in 2016 but allegedly continued offering fraudulent investments until at least September 2024.

Prosecutors claim that Lickiss misled investors by promising access to government and other fictitious bonds that he described as secure, tax-free, and capable of earning unusually high interest rates. He provided fraudulent promissory notes and created the illusion of legitimacy through fabricated investment tracking and periodic “lulling” payments, falsely labeled as interest, using funds taken from new investors.

ThinkAdvisor reports that the indictment also states that Lickiss failed to disclose his FINRA suspension and subsequent loss of licensure to investors—omissions that materially misrepresented the nature of the investment and his qualifications. Prosecutors allege that he used the misappropriated funds for personal expenses, including mortgage payments, travel, home renovations, and credit card bills.

The SEC has filed a parallel civil complaint against Lickiss, alleging even broader misconduct. According to the SEC, from 2018 through August 2024, Lickiss raised approximately $12.7 million from around 80 investors through fraudulent notes offering interest rates between 9 and 32 percent.

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

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