Michigan Attorney General Dana Nessel last Friday announced Stanley Alan Williams Jr., 41, of Auburn Hills, has pleaded no contest to several felonies for his role in a 2010 embezzlement scheme that defrauded four investors out of more than $124,000. His plea was made last week before Oakland County Circuit Court Judge Cheryl A. Matthews.
In 2010, Williams – through his purported investment companies, Karmanos Coleman Taubman Inc. (KCT) and Pechcoet Management LLC – invested a total of nearly $200,000 on behalf of his clients and embezzled more than half of the amount he invested; his clients lost the remainder in the investment market. (Williams’ company, KCT, is not affiliated with the Taubman or Karmanos families.)
Upon further investigation by the Attorney General’s Office, investigators determined that neither KCT and Pechcoet were registered under the Security Code according to the Michigan Department of Licensing and Regulatory Affairs.
The attorney general’s investigation began after LARA investigated and issued a Cease and Desist Order against Williams, to which Williams did not respond. The attorney general’s Financial Crimes Division picked up the investigation, leading to the charges against him, which include:
• Two felony counts of Embezzlement by an Agent – a maximum sentence of 15 years in prison or a $25,000 fine or both.
• One felony count of Larceny by Conversion – a maximum sentence of five years in prison or a $10,000 fine or three times the value of the property (whichever is greater).
• Three felony counts of securities fraud – a maximum sentence of five years in prison or a $500,000 fine or both.
• Two felony counts of Using a Computer to Commit a Crime – a maximum sentence of 10 years in prison or a $10,000 fine or both.
“Michiganders investing for the future shouldn’t have to think twice about who they trust with their hard-earned money,” Nessel said. “My office is steadfast in its commitment to hold those who defraud our state residents accountable.”
“This action sheds light on the financial devastation incurred by consumers and sends a strong message to beware of unlicensed, unscrupulous investment advisors who make unrealistic promises of high earnings,” said LARA Director Orlene Hawks. “We hold state-registered investment advisers to a rigorous standard of fiduciary duty and ethical conduct. Before placing any assets with an individual or company, contact us first to verify their registration status and credentials. Frequently monitor your investments for any potential losses.”
Williams will be sentenced before Judge Matthews at 1:30 p.m. Monday, July 22.
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