A Dallas County grand jury indicted Raymond Michael Malone on Nov. 19 on charges of securities fraud and theft related to the sale of investment contracts in his company, MM Capital LLC.
According to the indictment, Malone engaged in fraud by representing to the investor that the money would be used to acquire interests in MAG Bear Lake LLC, the owner of a golf resort. Malone allegedly used most of the investor's money to pay for his own personal expenses, not acquire interests in MAG Bear Lake.
Malone also allegedly failed to disclose to investors a previous criminal conviction. Malone in 2004 was sentenced to five years in state prison after pleading guilty to felony offenses of misapplication of fiduciary property and filing a false statement to procure credit. Malone was sentenced in Henderson County State District Court.