When he first started offering investment services in the early 2000s, Charlebois marketed himself as a “self-made” investor. He used social capital and his network of co-workers to attract clients. Despite these efforts, he began defrauding investors as early as 2005. Investors were tricked into signing loan agreements after Charlebois misrepresented his employment status. In addition, he offered to serve as a consultant.
WC Private LLC
The SEC filed a lawsuit against WC Private LLC, which is owned by Wynn Charlebois. The lawsuit alleges that Charlebois and his company violated the federal securities laws. The company engaged in a scheme of stock option trading. The SEC is seeking a preliminary and permanent injunction, asset freeze, disgorgement of ill-gotten gains, and civil penalties.
The suit alleged that Charlebois had defrauded investors, and that the company did not make payments promised to them. The lawsuit was filed in September, just five months before WC Private was established. The Charlotte Business Journal reported that Charlebois signed an investment agreement with a Charlotte law firm in September of that year. The Charlotte law firm received some payments, but significant payments were delayed by more than a year.
The SEC alleges that WC Private LLC was an illegal Ponzi scheme. Charlebois’ scheme allegedly defrauded more than $75 million in investments and diverted them to personal expenses and debts. In addition, Charlebois was able to use the funds from earlier investors to pay for his lavish lifestyle, and even his children’s private schools.
The SEC also filed a civil lawsuit against Charlebois. The SEC alleges that Charlebois conducted a Ponzi scheme. The company has denied these allegations. Charlebois is now facing charges in federal court. The suit is still ongoing. A settlement would require him to pay damages and disgorge profits. It is unclear how Charlebois will respond to the allegations in the suit.
Bank records reveal that Charlebois received over $7.1 million in investor funds. However, he failed to invest the funds as promised. The company’s bank records also reveal ongoing activity to obtain merchant cash advances. While it’s unclear if Charlebois will continue to work with WC Private LLC, he is likely to receive more settlements. The SEC’s lawsuit will also reveal the identity of any previous investors in the company.