A Florida man pleaded guilty Wednesday in federal court in Ohio to using his hedge fund management company as part of a years-long Ponzi scheme, officials stated.
According to court documents, Michael Wayne Williams, 48, of Miami, 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.
He used their money for undisclosed and unauthorized purposes, including to settle civil lawsuits accusing him of fraud and repay investors from discontinued funds 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.
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 up to 20 years in prison. A sentencing date has not yet been set.
The FBI Washington Field Office investigated the case.
Trial Attorney David A. Peters of the Criminal Division’s Fraud Section and Trial Attorney Elise Kent Bernanke, formerly of the Criminal Division, are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.