Georgia Attorney Accused of $35 Million Ponzi Scheme Linked to Real Estate Transactions

A Georgia attorney is accused of running a $35 million Ponzi scheme in which he sold promissory notes then diverted the proceeds to fund his law practice and other personal expenses.

Robert P. Copeland, of Marietta, was charged this week by the Securities and Exchange Commission of running a scam in which he promoted investment opportunities with false claims of earning clients returns of 15 to 18 percent interest in a year or less. At least 140 investors in Georgia and other states were taken by Copeland’s scheme, the SEC said.

Copeland deposited investor funds into bank accounts controlled by his law firm. Then, in classic Ponzi scheme fashion, he paid early investors purported profits with funds contributed by later investors, the SEC said. Copeland also allegedly used some investor funds to make improvements to his residence or purchase vehicles and valuable artwork.

“Copeland used his status as a legal professional and authority on estate planning to lure investors into a false sense of security,” said Katherine Addleman, Director of the SEC’s Atlanta Regional Office. “The SEC will continue to take swift action against attorneys and other individuals who abuse their position and status to defraud investors.”

Copeland is accused of running his criminal scheme from at least 2004 to January 2009. He allegedly directed the unregistered offer and sale of promissory notes evidencing investor loans, and represented to investors that the loans were safe and secured by real estate. Instead, the notes were often collateralized by security deeds to which Copeland signed the names of fictitious persons, according to the SEC.

The SEC charged Copeland with violating federal securities laws and is seeking the return of ill-gotten gains plus prejudgment interest and financial penalties.

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