Man arrested on charges of fraud for more than $350K
A North Augusta man has been arrested on charges related to securities fraud on allegations that he sold membership interests in a non-existent subdivision and kept more than $350,000 for himself.
David Thompson, 51, of 348 Sudlow Road, is charged with two counts of breach of trust and forgery.
South Carolina Attorney General Alan Wilson's office issued a press release Monday explaining the arrest that occurred Thursday.
Wilson, in his role as the state's securities commissioner, issued a civil order against the North Augusta man, ordering him to "cease and desist" from violations of the South Carolina Securities Act and ordering him to pay a $10,000 fine.
According to the order and warrants, Thompson sold membership interests totaling at least $360,000 in a corporation named Mossy Development LLC.
"The money collected was to be used to develop a subdivision called Mossy Oak in North Augusta," according to the press release.
Wilson said Thompson diverted the money to his personal use and to other entities owned and/or controlled by Thompson, the press release states.
According to incident reports, at least one of the victims came forward after learning that Thompson was considering bankruptcy. She said she was due more than $20,000 when she learned of the fraud.
The arrest warrants allege that the fraud dates back at least five years.
He is accused of taking investments and depositing the funds into various accounts in Aiken.
Thompson was released on a $30,000 bond.
Karen Daily, a graduate of USC, has been the crime reporter at the Aiken Standard for seven years. She has reported here since 2001.
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