A former FBI special agent and his wife have been indicted for defrauding 11 people out of $1.3 million through false investment schemes, according to the U.S. Department of Justice.
John R. Graves, 52, and his wife, Sara Turberville Graves, 44, of Fredericksburg, Va., misrepresented the safety of the funds they were asking people to invest and misrepresented what they were doing with the money.
Instead of investing it, the couple was using it to pay off early investors, and to buy real estate, pay for time-shares and pay off credit cards, among other personal expenses.
They are charged with a number of mail and wire fraud counts and conspiracy to commit mail and wire fraud and making misleading statements to the SEC.
Graves, who resigned from the FBI in 1999, was a CFP licensee and held other financial licenses. He founded Brook Point Management in 2003 through which he recruited and advised investment clients, sold insurance and performed estate and tax planning services. The fraud took place between 2008 and last July, according to the indictment.