CHESAPEAKE, Va. – A former Chesapeake investment adviser was sentenced to 12 and a half years in prison for an investment scheme that caused his clients to lose over $6 million.
According to court documents, Roger Odell Hudspeth II, 49, was an investment adviser and owner of Dominion Investment Advisors, LLC. Documents state that Hudspeth, along with other associates, sold fraudulent, unregistered securities to his clients.
“Hudspeth performed inadequate due diligence into the fraudulent investment offerings and concealed that the offerings were created, offered, and controlled by his associate, who previously had been banned by the Financial Industry Regulatory Authority (FINRA) for fraudulent activities,” the Department of Justice said in a news release.
Hudspeth and others that were part of the scheme held social security maximization seminars to get clients who were retired or near retirement. Hudspeth steered investors to offerings that were speculative, illiquid and high risk by making material misrepresentations and leaving out information. His clients lost over $6 million as a result of the securities fraud scheme. He received over $700,000 from the scheme. He used $20,000 of that to put a down payment on a Range Rover.
In early 2016, the Virginia State Corporation Commission revoked Hudspeth’s licenses, permanently closing Dominion Investment Advisors, LLC, and prohibiting Hudspeth from engaging in any investment advisory activities in the future.