Ky. trader convicted of fraud didn’t show up for his prison term, prosecutors say
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A Kentucky man convicted of committing “devastating fraud” has been arrested again after he failed to report to prison to begin a 10-year sentence last week.
William S. Evans III was ordered to self-report to the federal prison in Ashland on Dec. 15 but never showed up, according to federal court records. An arrest warrant was issued and Evans was arrested in Florida on Monday.
A federal judge in Orlando ordered Evans to be transported to Kentucky for additional court proceedings.
Evans admitted earlier this year to committing commodities fraud. He purported to be a professional investor doing business for Turning Point Investments, a company which wasn’t licensed to operate in Kentucky, according to federal court records. He was ordered to pay $16.9 million in restitution, according to court records.
Evans had been sentenced to 10 years in prison by a federal judge in Lexington, but was permitted to self-report to prison a few months after his sentencing hearing. Prosecutors filed a motion for Evans’ arrest the day after he failed to report to prison.
“It can be a separate crime to avoid custody or confinement after conviction,” prosecutors wrote in the motion to have Evans arrested.
No new charges had been placed against Evans as of Tuesday morning, according to court records.
Evans pooled money from more than 20 investors, according to court records. He encouraged them to put in money, even if it came from individual retirement accounts or other accounts which get penalized for withdrawing money early.
Evans put money from investors into his own bank accounts or into trading accounts in his name or the name of his wife, used money from some clients to pay off debts to other clients and spent some on personal expenses, including improvements to his house and payments on a boat, according to a sentencing memorandum.
Evans “ultimately lost huge sums of investor money,” according to court records. He also lied to clients and told them they were making large returns on their investments, or would soon be making back a lot of money.
Evans’ attorney wrote in court records that Evans was previously very successful in the finance industry. He acknowledged that Evans’ eventual failures caused his clients to lose millions of dollars and said that Evans “deeply regrets the harm he has caused.”
Evans’ attorney asked for leniency in Evans’ sentencing, in part due to Evans suffering from clinical dementia syndrome. Evans would “likely need increasing support” for his medical issues, his attorney wrote in court records.
Federal authorities froze more than $10 million Evans and his wife had in various accounts in May 2020, and they sold their house and boat to pay toward restitution, according to court records.
This story was originally published December 21, 2021 at 11:36 AM.