North Carolina Man Pleads Guilty to Defrauding Maryland Investors in Elaborate Scheme

A North Carolina man has pleaded guilty to wire fraud and investment adviser fraud for his role in a scheme that defrauded at least 64 investors in Maryland out of more than $650,000. The scheme, which ran from September 2019 through October 2022, involved the defendant posing as a licensed investment advisor and promising exorbitant returns on investments that were ultimately stolen for personal use.

Hunter Haithcock, 24, also known as Hunter Elliott, of Matthews, North Carolina, admitted to stealing at least $657,138.93 from individuals who entrusted him with their funds. According to his plea agreement, Haithcock misrepresented himself as working for a registered investment advisor, claiming he could guarantee principal investments and deliver returns of 100-200 percent or more. In reality, Haithcock had no affiliation with any legitimate investment firm and was not licensed to trade securities.

The fraudulent investment advisor scheme involved Haithcock fabricating documents to deceive investors about their portfolio gains. These fabricated “Statement Reports,” often provided weekly or bi-weekly, detailed purported stock trades and portfolio values. However, Haithcock diverted the investors’ money to his own accounts, using the funds for personal expenses such as credit card bills, meals, entertainment, car payments, travel, and cryptocurrency trading. Haithcock also used a portion of funds from new investors to repay a few earlier investors, a common tactic in Ponzi-like schemes.

Haithcock reportedly met victims through various channels, including a local church and word-of-mouth referrals. He routinely presented himself as Hunter Elliott, a securities broker who could provide exceptional investment returns. Investors, some of whom invested tens of thousands of dollars and others $10,000 or less, were led to believe their principal was protected regardless of market performance. When investors eventually sought to retrieve their funds, Haithcock provided fabricated excuses before ceasing communication.

As a result of his guilty plea, Haithcock faces a maximum of 20 years in federal prison for wire fraud and five years for investment adviser fraud. U.S. District Judge Matthew Maddox has scheduled sentencing for February 6 at 10 a.m.

The investigation was a collaborative effort, with U.S. Attorney Kelly O. Hayes for the District of Maryland commending the Federal Bureau of Investigation (FBI) – Baltimore Field Office, Special Agent in Charge William J. DelBagno, and acknowledging the assistance of the U.S. Securities and Exchange Commission, the Cecil County Sheriff’s Office, and the Office of the Attorney General for the State of Maryland. Assistant U.S. Attorneys Paul Riley, LaShanta Harris, and Joseph Wenner are prosecuting the case.

This case highlights the importance of verifying investment advisor credentials and being wary of promises of unusually high investment returns. For more information on reporting fraud and resources available, the U.S. Attorney’s Office for the District of Maryland can be reached at justice.gov/usao-md and justice.gov/usao-md/community-outreach.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland.

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