Sep 9
2013

Leland Alan Dykes of Houston pleaded guilty Sept. 9 to one charge of misapplication of fiduciary property and is scheduled to be sentenced in Harris County state District Court on Nov. 11.

Two companies Dykes founded sold approximately $1 million in fraudulent Secured Debt Obligations (SDOs). According to the Affidavit for Arrest Warrant in the case, Dykes’ companies falsely claimed the SDOs were backed by international insurers and would pay investors their principal plus interest. Dykes spent investors’ money on unrelated expenses, including $175,017 for house and rent payments and $29,887 in restaurant charges.