There may be more possible victims in a multi-million dollar investment fraud case in San Diego County, many of whom are believed to be members of The Church of Jesus Christ of Latter-day Saints, the District Attorney's office said.
Jacob Keith Cooper, 40, Douglas David Shoemaker, 41, and Nathan Phillip McNamee, 40, are accused of accused of misrepresenting, not including or lying about information when representing Total Wealth Management, Inc. (TWM), an advisory firm in San Diego. The firm has clients in San Diego, Orange County, Virginia, Hawaii and possibly Utah.
Cooper was the sole owner and Chief Executive Officer of the company. McNamee and Shoemaker were Chief Compliance Officers. All three were involved in reviewing and preparing investor disclosure documents.
The men have been charged with 18 felonies, including conspiracy, fraudulent sales of a security, theft from an elder adult and employing an artifice or scheme to defraud investors of millions of dollars, according to the District Attorney's office.
“Defrauding investors, some of whom are senior citizens, out of their hard-earned savings is reprehensible,” DA Bonnie Dumanis said in a statement. “Our Economic Crimes Division is working hard to hold these defendants accountable for their crimes and any additional victims should contact our office.”
The company managed approximately $103 million across 773 client accounts, according to fillings with the U.S. Securities and Exchange Commission (SEC) - money which the three men invested.
When the men invested their clients' money, they failed to disclose conflicts of interest, according to the DA. The man placed their clients' money into unaffiliated funds which paid them for putting the money there, the DA alleges.
In return, the clients took part in a pattern of conduct which hid the revenue-sharing fees they were paid according to the DA. The men misrepresented the role clients would have in investment strategies, according to the DA.
The three men are scheduled to appear in court on Monday.
Any potential victims of this case are asked to call 619-515-8550.