David Lyman Spalding will spend the next 15 years in a federal prison after scamming almost $4 million from unwitting investors.
The 62-year old Colleyville businessman promised 97 investors across 11 states they would earn generous returns on money invested in a wind farm. Unfortunately, it did not exist.
Prosecutors say Spalding spent the funds on travel, jewelry – including a $76,000 ring – and acquiring real estate. In addition to his prison sentence, a U.S. District Judge ordered Spalding to pay $3.39 million in restitution and forfeit the proceeds from the sale of his home.
Sadly, news involving investment scams is incredibly common. Our firm has handled cases in which stockbrokers forged margin call documents. We have handled cases involving the churning of accounts to create commissions. We have seen investments of $10 million dwindle to $3 million in one of the hottest markets of our times.
We have also handled cases involving welfare benefit plans including 419 plans, 412i plans, and Section 79 or 83 plans, all of which were hailed as great tax-deductible investments to assist with retirement savings.
Mr. Spalding deceived his investors from at least 2003 to April 2011 – and that is not uncommon. The actual deceivers are often very clever and can go undetected by even sophisticated investment personnel. We seek to sniff out the deceivers—and from them, we endeavor to recoup our clients’ lost funds and other damages.
If you or someone you know has been duped or think you may have been the victim of an investment fraud, perhaps we can help. We will leave no stone unturned in our efforts to recover that lost investment, as well as any other damages arising from the same.
