Fraudster Sentenced to More Than 13 Years in Parallel Criminal Case
Litigation Release No. 25088 / May 13, 2021
Securities and Exchange Commission v. DaRayl D. Davis and Affluent Advisory Group, LLC, Civil Action No. 1:17-CV-09224 (N.D. Ill. filed December 22, 2017)
United States v. DaRayl D. Davis, 18-CR-00025 (N.D. Ill. filed January 11, 2018)
DaRayl D. Davis, charged by the SEC in December 2017 with raising millions of dollars from investors by selling them fictitious financial products, has been sentenced in a parallel criminal case to 160 months in prison and ordered to pay restitution of more than $7.1 million.
The criminal charges against Davis stem from the same misconduct alleged in the SEC's complaint, filed in federal district court in Chicago. The complaint alleges that Davis hosted seminars and used his religious affiliation to gain investors' trust. The complaint further alleges that Davis fabricated documents and made false statements to support the sale of fictitious financial products. As alleged, Davis did not invest the money he raised from his clients as he had represented, but instead used the money to fund a lavish lifestyle, repay prior investors, and further his fraudulent scheme.
The SEC's litigation against Davis and relief defendant Affluent Advisory Group, LLC is ongoing. On March 26, 2018, the district court entered default judgment as to liability against Davis and Affluent Advisory Group, LLC. The court also held Davis in contempt for violating an asset freeze order previously entered by the court.
The SEC's investigation was conducted by Scott A. Thompson, Norman P. Ostrove, and Jacquelyn D. King, and was supervised by Kelly L. Gibson. The litigation is being handled by Mark R. Sylvester, Jennifer Chun Barry, and Mr. Ostrove, as well as Jonathan S. Polish of the SEC's Chicago Regional Office. The SEC appreciates the assistance of the U.S. Attorney's Office for the Northern District of Illinois and the Chicago field office of the Federal Bureau of Investigation.