The FBI is searching for Christopher Burns, 37, who left his home after being asked to turn over documents in his fraud case. His clients are now suing. (Photo via FBI)
An Atlanta-area advisor who went missing after allegedly scamming about 100 investors as part of a Ponzi scheme involving the sale of illegal promissory notes is now facing a class-action lawsuit.
The suit was filed Wednesday against Christopher W. Burns, 37, of Berkeley Lake, Georgia, and his various business entities in U.S. District Court for the Northern District of Georgia in Atlanta.
Matson Money, an Arizona RIA that Burns allegedly referred his clients to, was also named as a defendant in the complaint for its alleged role as a financial co-advisor with Burns. However, the firm "had absolutely no knowledge of, nor did we profit from Mr. Burns' outrageous scam," Mark Matson, its CEO and founder, said in a statement provided to ThinkAdvisor on Friday.
The firm was "shocked and deeply saddened" to hear that Burns had "stolen money from his clients through a fraudulent and deceitful investment scheme," and was "outraged on behalf of the individuals and families who trusted him to act in their best interests," Matson said.
Burns "invested a portion of his client capital into our equity and fixed income funds from 2016 to 2020 [and] we were not aware that at the same time, Mr. Burns was apparently luring his clients to invest their free cash in fraudulent promissory notes in a local peer-to-peer lending scheme," Matson added.
The FBI and U.S. Attorney's Office for the Northern District of Georgia announced Monday that Burns was charged with mail fraud and there was a warrant for his arrest because his whereabouts were unknown.
