Rutherford Co. Man Sentenced to 57 Months in Prison on Securities Fraud Charges for Stealing More Than $2 Million from More Than 30 Investors
| U.S. Attorney’s OfficeOctober 27, 2015 |
CHARLOTTE, NC—U.S. District Judge Max O. Cogburn, Jr. sentenced today Chuckie Beaver, 52, of Ellenboro, N.C. to 57 months in prison for defrauding more than 30 investors of over $2 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Beaver to serve three years under court supervision after he is released from prison.
Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) join U.S. Attorney Rose in making today’s announcement.
According to information contained in court documents and today’s sentencing hearing, Beaver was the sole owner of “Best Services, Inc.,” (Best Services), a company specializing in the repair of industrial electronic equipment. Court records show that from June 2012 to April 2014, Beaver induced over 30 victims, including friends, neighbors, and fellow church members, to invest in his fraudulent scheme, falsely claiming that his company needed additional capital to purchase materials to complete a large number of outstanding repair orders from major corporations. To further the scheme, Beaver created and showed his investors fake documents, including bogus repair orders indicating significant work activity, fake customer checks, and fake customer e-mails, giving a false impression he had strong relationships with major corporations.
Court records show that Beaver often gave his victims post-dated checks at the time of their initial investment, written for the full amount of the promised investment plus as much as 100% interest. According to court records, when the investors’ checks were returned by the bank for insufficient funds, Beaver made up a number of excuses to his victims, and, in some instances, he induced the victims to invest additional funds with the promise of even greater returns. Beaver previously admitted in court that contrary to what he promised his investors, he used their money to pay for personal expenses and to make payments to earlier investors, commonly referred to as Ponzi payments. In total, over the course of the scheme, Beaver defrauded more than 30 individuals from Mecklenburg, Gaston, Cleveland and Lincoln counties of more than $2 million. Beaver pleaded guilty to securities fraud in November 2014.
In announcing Beaver’s sentence, Judge Cogburn said that, “Everybody needs to watch out for this defendant” and stated that he did not trust anything the defendant said. “It is obvious he is a con man,” Judge Cogburn noted, adding, “Once a con man always a con man.”
Beaver is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the Secret Service and USPIS. Assistant United States Attorney Kevin Zolot, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
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