Ex-Broker Gets 35 Years in Prison for $25M Scam Targeting Seniors

'Cruel Indifference'

Bank and his co-conspirators — including his attorney, Billy Seabolt, 56, of Williamsburg; corporate executive Raeann Gibson, 49, of Florida; and salesman Roger Hudspeth, 52, of Chesapeake — allegedly deceived hundreds of unsuspecting investors, most of whom were at or near retirement age, by fraudulently convincing them to invest in firms owned and controlled by Bank.

At Bank's direction, his co-conspirators allegedly stole significant portions of investment contributions by their victims to fund a criminal enterprise and Bank's lifestyle.

"Darryl Bank and Billy Seabolt, along with their co-conspirators, robbed hundreds of elderly victims of their life savings and ruined the financial security many had worked for all their lives," according to Brian Dugan, special agent in charge of the FBI's Norfolk Field Office. "Their actions caused needless hardships and were taken with cruel indifference to the long-lasting impact on their victims."

Despite being barred by FINRA, Bank allegedly created an investment company called Dominion Private Client Group and continued to sell unregistered securities on his own and via insurance sales reps across the U.S.

Seabolt, whose legal practice was otherwise focused on elder and trust law, served as Dominion's legal counsel and was allegedly involved in negotiating and developing many of the fraudulent investments and corporations.

The conspirators allegedly made material misrepresentations and omissions to sell illiquid, highly speculative investment vehicles.

Based on those fraudulent representations, the investors cashed out of 401(k) and other retirement accounts to buy into Bank's investments, without knowing he immediately transferred 20%–70% of their funds to other companies he controlled in the form of purported "fees," much of which he allegedly ended up spending on luxury and designer goods.

Bank was convicted on all 27 counts submitted to the jury, including conspiracy, mail and wire fraud, selling unregistered securities, securities fraud and money laundering.

Hudspeth pleaded guilty to investment advisor fraud and money laundering, and was sentenced to more than 12 years in prison in May 2018.