Larry David Eckenrode of McKinney, a three-time felon, was arrested Sept. 29 and faces securities fraud, theft, and money laundering charges related to his sale of investments in a short-term lending program that was allegedly making loans to international fuel businesses.
A Collin County grand jury indicted Eckenrode on Aug. 20, 2015.
The indictment alleges that Eckenrode, instead of using investor funds to make the loans, paid for his personal expenses with the money.
Eckenrode didn't tell investors about his convictions, starting in 1982 with a conviction for felony theft in Harris County State District Court. Eckenrode was sentenced to 10 years in state prison and ordered to pay restitution of $238,174.
Eckenrode's other convictions were in 2003. In January, he pleaded guilty to misapplication of fiduciary property or property of a financial institution. He was sentenced to 10 years in state prison in Dallas County State District Court. In May, Eckenrode was convicted of commercial bribery in Dallas County State District Court and sentenced to state jail for two years, a sentence that was probated for five years.
Eckenrode also failed to disclose a federal tax lien; a lien filed by the Texas Workforce Commission to collect unpaid wages, penalties, and fees; and a default judgment against him in Travis County State District Court that resulted from a suit by the Texas Department of Licensing and Regulation.
Attorneys in the Enforcement Division of the State Securities Board are serving as special prosecutors in the case against Eckenrode.