Edwin Emmett Lickiss Jr., 78, of Danville, pleaded guilty in federal court to one count of wire fraud and one count of money laundering. Prosecutors allege he ran a Ponzi scheme from 1998 through September 2024 involving 93 investors and at least $9.5 million in losses. He allegedly told investors their money would be placed into exclusive tax-free bonds with unusually high returns. Authorities say he instead used newer investments to pay earlier clients and to cover personal expenses, including home renovations, travel, vehicles, mortgages, and credit card payments. Prosecutors also allege he used the letterhead of Foundation Financial Group to issue fake promissory notes. Sentencing is scheduled for August, with prosecutors seeking six to 10 years in prison, while his attorney recommends six years. The SEC filed a related civil enforcement action.
"Lickiss reportedly admitted to running a Ponzi scheme that prosecutors say stretched from 1998 through September 2024 and involved 93 investors who were cheated out of at least $9.5 million following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal."
"Federal prosecutors say Lickiss falsely told investors he was placing their money into exclusive tax-free bonds that promised unusually high returns, while instead using newer investments to pay earlier clients and cover personal expenses, including home renovations, travel, vehicles, mortgages, and credit card payments."
"Authorities say Lickiss also used the letterhead of his former firm, Foundation Financial Group, to issue fake promissory notes."
"Lickiss is scheduled to be sentenced in August with prosecutors seeking six to 10 years in prison. As the Chronicle reports, his attorney is recommending a six-year sentence. The US Securities and Exchange Commission has also filed a civil enforcement action against Lickiss in the Northern District of California."
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