Kentucky commodities trader charged in alleged $17.7 million fraud
A Central Kentucky commodities trader defrauded investors by promising double-digit profits but actually lost or misappropriated much of their money, a federal grand jury charged.
William S. Evans III allegedly received $17.7 million as a result of the offenses.
The grand jury indicted Evans Thursday on one charge of commodities fraud and three charges of wire fraud.
Evans lives in Mercer County but had an office in Lexington and committed fraudulent acts in Fayette County, according to court documents.
Evans represented himself as a trader who specialized in the commodities futures market, operating a company called Turning Point Investments, court documents say.
He allegedly told investors there was little risk of losing the money they gave him and lied about the performance of the trades he was doing for them.
In one example cited in the indictment, Evans told an investor in an email on Dec. 21, 2018 that his return would be 15 to 20 percent and that he had made money that day.
In fact, Evans knew the investor was losing money, the indictment said.
The Commodities Futures Trading Commission sued in May to shut down Evans and freeze accounts controlled by him and his wife, Frances Evans, based on similar allegations of fraud.
Evans told one investor he had developed software that helped him decide the best times to buy and sell, according to that lawsuit.
Evans allegedly used investors’ money for his own trades and for personal expenses, such as his house payment, and to give some to other investors.
Using money from one investor to pay another, rather than generating actual returns, is called a Ponzi scheme.
In a second federal lawsuit, a Lexington husband and wife, and the wife’s sister, claimed that Evans bilked them of millions.
Evans told the couple he would produce double-digit profits for them with a maximum risk of losing only 5 to 8 percent of the money, the lawsuit said.
The couple gave Evans $3 million in mid-2018, and had gotten back only $575,000 as of June, the lawsuit alleged.
The woman’s sister gave Evans $5 million to invest earlier this year, the lawsuit said.
The lawsuits name Evans and his wife, but the criminal charges are only against William Evans.
The wire-fraud charges against him carry a maximum sentence of 20 years, while the top sentence on the commodities fraud charge is 10 years.
If Evans is convicted, prosecutors want a judgment against him of $17.7 million.
The government also wants an order for Evans to forfeit $9.9 million in accounts he and his wife control; a 2016 Sea Ray boat; their house overlooking Herrington Lake in Mercer County; and a membership bond at Idle Hour Country Club in Lexington.
Attorneys representing Evans in the civil complaints did not respond to a request for comment on the indictment.
In those earlier complaints, Evans has denied wrongdoing.
