N.C. U.S. Attorney: CPA sentenced for securities fraud - Insurance News | InsuranceNewsNet

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April 7, 2023 Regulation News
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N.C. U.S. Attorney: CPA sentenced for securities fraud

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United States District Judge Kenneth D. Bell sentenced Mac Wayne Billings, 49, of Raleigh, N.C. to 41 months in prison for defrauding investors in his company Alpha Finance Company (ALPHA) of at least $1.3 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today's announcement.

On June 21, 2022, Billings was indicted by a grand jury in Charlotte for securities fraud. On September 13, 2022, Billings pleaded guilty and admitted that from 2016 through 2019, he made false representations to ALPHA investors concerning the use of their money and deliberately withheld important information about ALPHA's business. Billings incorporated ALPHA on October 22, 2008, and opened its first office in Sparta, N.C. ALPHA made small loans--usually less than $7,000--to consumers, secured by used vehicles and other property that could be repossessed. Billings financed ALPHA with loans from local community residents that Billings promised to pay back with interest. At least 19 residents of Alleghany, Wilkes and Surry Counties, invested over $3.6 million in ALPHA "notes."

Billings admitted that in 2016 he knew ALPHA was operating at loss, but was still soliciting new investors and telling existing investors that ALPHA was "doing well." Billings used investment statements, emails and meetings to mislead and deceive victim-investors into believing that ALPHA was a profitable company and that the victims' investments were safe. Billings also admitted that he failed to disclose material information to investors concerning ALPHA's financial and business troubles, including that he had sold or mortgaged most of ALPHA's assets to hard money lenders. Based on the fraudulent information provided by Billings, many of the victim-investors renewed and/or made additional investments with ALPHA, causing them to incur further financial losses.

As part of Billings sentence, Billings was ordered to pay approximately $3.5 million in restitution to investors who lost their retirement savings when ALPHA was closed by the North Carolina Commissioner of Banks (NCCOB) in June 2019.

On March 23, 2023, the North Carolina Board of Certified Public Accountant (CPA) Examiners revoked Billings' CPA certification.

In making today's announcement, U.S. Attorney King commended the FBI for their investigation of the case and thanked the Securities and Exchange Commission, the North Carolina Commissioner of Banks, and the North Carolina Attorney General's Office for their cooperation.

Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney's Office in Charlotte prosecuted the case.

* * *

Original text here: https://www.justice.gov/usao-wdnc/pr/cpa-sentenced-securities-fraud

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