VIRGINIA BEACH, Va. — A Virginia Beach investment advisor has been sentenced to 35 years in prison after officials say he was involved in a fraud scheme.
Daryl Bank, 51, was sentenced Monday, just one week after his Williamsburg-based attorney was sentenced to 10 years in prison.
Both were involved in a fraud scheme that resulted in millions of dollars in losses. That money came from more than 300 victims, most of whom were elderly.
“These defendants and their co-conspirators are responsible for orchestrating an extraordinarily serious nationwide scheme to defraud hundreds of investors out of over $25 million,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia.
A news release from the Department of Justice says Bank ran the investment fraud scheme from January 2012, through July 2017.
The scheme was based in Hampton Roads and Port Lucie, Florida, but operated across the country.
Bank and his three co-conspirators scammed investors, most of whom were around retirement age, by convincing them to invest in companies that Bank owned and controlled.
Bank's co-conspirators then stole large portions of the investment contributions to "fund their criminal enterprise and Bank’s lavish lifestyle."
The DOJ said investors cashed out of 401(k) and other retirement accounts without knowing that Bank immediately transferred 20-70% of their funds to other companies he controlled.
Bank then spent those funds on luxury and designer goods. Victims suffered losses of more than $25 million.
On Monday, Bank was convicted on all 27 counts submitted to the jury. He was sentenced to 35 years in prison for conspiracy, mail and wire fraud, selling unregistered securities, securities fraud, and money laundering.
Bank's co-conspirators have all been sentenced as well. Billy Seabolt, Bank's attorney, was sentenced to 10 years in prison.
Co-conspirator Raeann Gibson was sentenced to 10 years in prison, and Roger Hudspeth was sentenced to 12 years.
