A Hampton Roads financial adviser is expected to plead guilty to two federal criminal counts for his role in running a fraudulent investment scheme that led investors to lose at least $6 million, according to charges filed by the U.S. Attorney’s office.
Roger Odell Hudspeth II, who owned Dominion Investment Advisors LLC with offices in Norfolk and Virginia Beach, was charged Tuesday with investment adviser fraud and unlawful monetary transactions.
Hudspeth had partnered with Daryl Gene Bank, a financial radio host, to sell securities to investors, many of whom were nearing retirement age.
Hudspeth’s attorney, Jeffrey Swartz, confirmed he’s working with his client to set a court date and prepare a guilty plea.
The government’s filing doesn’t mention Bank.
It does refer to an “associate #1” who, like Bank, was barred in 2010 from being an investment broker and from associating with any other members of the Financial Industry Regulatory Authority, which would have included Hudspeth.
Bank has been the subject of a case brought by Virginia’s State Corporation Commission that accuses him and his chief operating officer of bilking investors out of $21 million.
An attorney representing Bank in that case had indicated in filings late last year that a federal criminal indictment against his client was imminent.
So far, Hudspeth is the only person to be criminally charged in federal court related to the investment business.
Bank and his co-defendant in the state’s civil case, Raeann Gibson, have said in filings that theyacted in good faith and relied on facts and information from compliance officers and legal counsel.
State regulators want them barred from selling securities in Virginia and ordered to pay restitution to investors as well as unspecified civil penalties. A hearing in that case is set to begin Sept. 25.
Last year, Hudspeth admitted to state regulators that he sold unregistered securities to 58 investors between 2011 and 2015. He was told to pay back at least $1 million within five years or face a $1 million penalty.