The Securities and Exchange Commission has barred Melvin Wimmer Jr., an unregistered investment adviser in South Carolina, who pled guilty to one count of securities fraud in May.
Mr. Wimmer, who headed Cornerstone Capital of Greenwood, "knowingly and willfully devised a scheme and artifice to defraud and to obtain money and property by means of false and fraudulent pretenses, representations and promises in connection with the purchase and sale of a security," the SEC said in its administrative proceeding.
According to an article in the Greenwood Index-Journal, Mr. Wimmer defrauded 25 people who invested $3.6 million through his now defunct firm.
"Mr. Wimmer manufactured fraudulent account statements that falsely showed consistent gains of 8% to 10% on an annualized basis. Wimmer emailed these fraudulent account statements to the investors on a monthly basis throughout the duration of the scheme," noted the Index-Journal, citing the May indictment.