SEC Charges South Florida Resident and His Company for Alleged Investment Scheme Defrauding Law Enforcement
The Securities and Exchange Commission charged CMI Capital LLC and its founder Michael D. Williams on Sept. 23, 2026, alleging a fraudulent investment scheme that raised about $860,000 from at least 18 investors, many of whom were current or retired South Florida law enforcement officers. The SEC says Williams made false statements about fund performance, misappropriated roughly $384,000 for personal expenses, and has since repaid more than $375,000 to some investors; the defendants have agreed to a bifurcated settlement subject to court approval.
Why It Matters
The case highlights alleged misuse of investor trust tied to professional relationships and underscores SEC enforcement against frauds that target specific communities. The settlement, which seeks injunctions, disgorgement, civil penalties and an associational bar for Williams, illustrates remedies the SEC pursues in alleged adviser-related frauds.
Key Facts
- Charging agency: U.S. Securities and Exchange Commission (SEC)
- Defendants: CMI Capital LLC (also doing business as Check Mate Investments) and Michael D. Williams
- Date of announcement: Sept. 23, 2026
- Alleged amount raised: Approximately $860,000
- Number of investors: At least 18
The Securities and Exchange Commission filed a complaint on Sept. 23, 2026, in the U.S. District Court for the Southern District of Florida charging CMI Capital LLC and its founder and manager, Michael D. Williams, with running an alleged fraudulent investment scheme. According to the SEC, the defendants raised roughly $860,000 from at least 18 investors from about October 2023 through August 2024. Many of those investors were reported to be current or retired law enforcement officers in South Florida.
The complaint alleges that Williams made numerous false and misleading statements to induce investments in two funds he controlled, including claims that one fund’s portfolio exceeded $5 million and had returns above 140%. The SEC says Williams sent cropped screenshots of graphics that purported to show large trading profits as one tactic to persuade clients.
The agency further alleges Williams misappropriated about $384,000 of investor and client funds for personal uses such as paying credit card balances, purchasing a sports car, and funding vacations. The filing states that Williams began repaying certain investors in August 2024 and has returned more than $375,000 to some of them.
The SEC charged the defendants with violating antifraud and registration provisions of the Securities Act of 1933 and antifraud provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. The defendants have consented to a bifurcated settlement, subject to court approval, that would permanently enjoin them from violating the charged provisions and would bar Williams from certain securities activities; the proposed judgments also call for disgorgement with prejudgment interest and civil penalties in amounts the court will set, and include a forthcoming associational bar against Williams.
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Original source: SEC Newsroom