On June 17, Tommie “Tom” Carter Jr., from central Texas, was arrested after being charged with securities fraud, theft, misapplication of fiduciary property and money laundering as part of a white-collar criminal investment scheme.
Carter allegedly sold investments referred to as the Tom Carter Investment Program. He stands accused of misrepresenting that principal obtained from investors would be used to buy and sell real property or distressed business equipment.
According to the indictment, Carter claimed investor money was secure, fully protected and guaranteed. However, Carter allegedly used new investor money to pay obligations owed to prior investors and used their money for purposes unrelated to the investment. These schemes are often referred to as Ponzi schemes.
The Securities Commissioner originally entered a cease and desist order to stop Carter from illegally offering securities that purportedly guaranteed lucrative annual returns. Carter consented to the order and agreed to stop illegally offering securities in Texas. Carter allegedly concealed the order when later fraudulently selling investments in the Tom Carter Investment Program.
Derrick R. Trussell, a co-defendant, was previously arrested and charged with securities fraud and other crimes. Trussell used to be registered to sell securities but was barred from the industry. His criminal case is pending in Bexar County District Court.
The State Securities Board investigated the schemes allegedly perpetrated by Carter and Trussell, and the agency recognizes the critical assistance of the Austin Police Department in locating and arresting Carter. The Bexar County District Attorney’s Office is prosecuting both defendants. If convicted, they face up to 99 years to life in prison.