CHARLES CALEB FACKRELL (CRD#: 5369665) 36 years-old, from Booneville, N.C., plead guilty in April to one count of fraud for operating a $1.4 million Ponzi scheme, was sentenced December 6, 2016, to 63 months in prison. Fackrell faces three years of court supervision after his release from prison. He is required to pay $819,919 in restitution to his victims. He faced a maximum prison term of 20 years and a $5 million fine.
According to court documents from May 2012 through December 2014, Fackrell ran a Ponzi scheme using approximately $1.4 million in funds he solicited from at least 20 victims. According to court records, Fackrell was a broker who solicited his victims away from legitimate investments to investments with, Robin Hood, LLC, Robinhood LLC, Robin Hood Holdings LLC, and Robinhood Holdings LLC., and related entities all controlled by Fackrell through which he could access the victims’ funds.
Secretary of State Elaine Marshall said, “This is one of the most vicious financial crimes we have seen in North Carolina in many years. Caleb Fackrell was a registered stockbroker who completely betrayed that trusted position to rip off his victims using the name ‘Robin Hood’ in the title of his Ponzi schemes no less.”
Fackrell claimed the investors’ money would be invested in, or secured by, gold and other precious metals, when in fact Fackrell spent only a fraction of investor money on such investments. According to court records, Fackrell guaranteed annual returns of 5% to 7%. Fackrell used the majority of the investors’ money for personal expenses. Fackrell also used some of the victims’ money to make interest payments to investors who demanded their money back. According to court records, in an attempt to conceal his fraud, Fackrell asked a third party to destroy a computer and documents related to the Ponzi scheme.
Fackrell was ordered to forfeit $779,983, U.S. and foreign currency, gold and other precious metals, and gemstones that were seized by U.S. Marshals from the Cadillac he was driving on Dec. 1, 2014.
Three clients of Fackrell filed a complaint against his former employer, LPL Financial LLC, accusing it of failing to exercise proper supervision over more than $1 million in financial transactions made by Fackrell.
According to FINRA’s BrokerCheck, CHARLES CALEB FACKRELL, has had 10 Customer Disputes on his FINRA report since 2014. He had been registered in the securities industry for 6 years. FINRA has permanently barred CHARLES CALEB FACKRELL from acting as a broker or otherwise associating with firms that sell securities to the public. The last two firms he was registered with were:
06/2010 - 12/2014 LPL FINANCIAL LLC - YADKINVILLE, NC
12/2009 - 06/2010 WELLS FARGO ADVISORS, LLC - HIGH POINT, NC
If you were a victim of former LPL Financial broker, CHARLES CALEB FACKRELL’s Robin Hood Ponzi Scheme and you lost your investment, call Soreide Law Group for a no-cost consultation with an attorney regarding the possibility of recovering those losses at: 888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA and we operate on a contingency fee.
