Mar 3
2010

David Boyer Prince was indicted on 12 counts of wire fraud on March 3, 2010, in United States District Court, Northern District of California, San Jose Division.

The indictment stems from an investigation by the Texas State Securities Board, which worked with the Federal Bureau of Investigation on the case. The Deputy Commissioner of the State Securities Board had previously entered an Emergency Cease and Desist Order against Prince for violating the registration and anti-fraud provisions of the Texas Securities Act.

The indictment alleges that Prince devised a scheme to defraud investors in three funds by making false statements about his investing track record and the safety and security of the investments.

The indictment also alleges Prince raised $1.2 million from about 30 investors, but failed to provide the vast majority of the investors with the interest and principal payments he had promised and converted at least $220,000 of investors' money into cash and for his personal use.