SEC Charges South Florida Resident and His Company for Alleged Investment Scheme Defrauding Law Enforcement

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The U.S. Securities and Exchange Commission announced charges against CMI Capital LLC and its founder and manager, Michael D. Williams, of Port St. Lucie, Florida, for an alleged fraudulent investment scheme that raised approximately $860,000 from at least 18 investors, many of whom are current or retired law enforcement officers in South Florida. According to the SEC's complaint, filed in the U.S. District Court for the Southern District of Florida, Williams made false statements from at least October 2023 through August 2024, including claims that one fund had a portfolio value of more than $5 million and returns exceeding 140 percent, and allegedly misappropriated approximately $384,000 of investor and client funds for personal expenses; the complaint states Williams has repaid more than $375,000 to certain investors since August 2024. The complaint charges violations of antifraud and registration provisions of the Securities Act of 1933, and antifraud provisions of the Securities Exchange Act of 1934 and Investment Advisers Act of 1940. The defendants, without admitting the allegations, agreed to a bifurcated settlement subject to court approval, consenting to judgments that would permanently enjoin them from violating the charged provisions, further

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