Florida-based hedge fund manager Michael Wayne Williams has pleaded guilty in the Southern District of Ohio to using his company as part of a Ponzi scheme that defrauded investors of millions of dollars over a number of years.
According to court documents, Williams, 48, was the chief executive officer and investment manager of Highguard Capital and its affiliated entities, Guardian Opportunity Fund and Guardian Opportunity Management. Williams convinced victims to invest over $3 million in Guardian Opportunity Management and used their money for undisclosed and unauthorised purposes, including to settle civil lawsuits accusing him of fraud and to repay investors from discontinued funds that he previously managed.
In early February and March 2021, Williams convinced a Mississippi woman to invest $1,005,000 into Guardian Opportunity Management. Williams did not inform her that Guardian Opportunity Management’s principal investment vehicle, Guardian Opportunity Fund, had recently lost 90% of its assets under management and that Williams intended to use her money to repay other investors in Guardian Opportunity Management, who were threatening legal action against him.
Williams pleaded guilty to wire fraud and faces a maximum penalty of 20 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the US Sentencing Guidelines and other statutory factors.
