Richmond Man Pleads Guilty to $8.3 Million Fraud Schemes

By Katie Hauser

Published on December 07, 2006

Brown is scheduled for a sentencing hearing on March 14, and faces maximum penalties of 120 years in prison and up to $16 million in fines for each count.

Brown’s arrest in September was the result of investigations by the FBI, the IRS, and the U.S. Postal Service after allegations that he was using his company, Brown Investment Services, to defraud investors.

More than 350 investors were cheated after being encouraged to give money to Brown during phony seminars and investment classes he conducted. Investors were told that Brown would double their money every 30 days. Instead, Brown used their money to purchase more than $2.9 million worth of automobiles and other luxuries for himself and his employees. He also lost more than $61,000 of investors’ money in the foreign currency market.

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