Kentucky trader admits fraud in case involving at least $16 million in investments
A Central Kentucky man has pleaded guilty to fraud in a case in which investors claim he took at least $16.8 million from them.
William S. Evans III pleaded guilty Friday in federal court in Lexington to one charge of commodities fraud and one charge of wire fraud.
Evans lived in Mercer County but had an office in Lexington. He represented himself as a trader specializing in investments in the commodities futures market, operating a company called Turning Point Investments.
Evans was not licensed to do such trades, according to his plea agreement.
Evans promised people substantial returns on their money with little risk of loss, but in reality lost “huge sums” of investors’ money, his plea agreement said.
When he met with clients, Evans allegedly lied and told them their investment was making money or would be soon, when in fact he knew he rarely made money.
The plea agreement cited an email that Evans sent to an investor in December 2018 claiming that his return would be 15 to 20 percent, that there would be no reduction in his principal amount and that his account had made money that day.
Evans knew the investor’s account was losing money, according to the indictment.
Evans also showed people bank records to mislead them into thinking their money was safe, according to his plea.
The amount of restitution hasn’t been determined, but totals at least $16.8 million to 22 investors, the court document said.
Investors will likely argue the amount should be higher, the plea agreement said.
Evans agreed not to contest forfeiting $10.3 million. About $400,000 of that came from the sale of his house overlooking Herrington Lake and a Sea Ray boat, while the rest was in bank or investment accounts.
Evans acknowledged there was a connection between the money and criminal activity.
U.S. District Judge Karen K. Caldwell scheduled Evans to be sentenced in September. The most serious charge, mail fraud, has a top sentence of 20 years in prison.
This story was originally published June 7, 2021 at 9:58 AM.
