Montgomery County Man Admits to Multi-Year Investment Fraud and Securities Law Violations

A Montgomery County man has pleaded guilty to multiple felony charges stemming from a multi-year investment fraud scheme that defrauded investors, employees, and contractors. Daniel Angcao Canubas, the founder and CEO of Formicidae, LLC, entered his plea before the Honorable Christopher Fogleman of the Circuit Court for Montgomery County. His conviction includes one count of felony theft scheme exceeding $100,000, another count of felony theft scheme between $25,000 and $100,000, and a count for violating a securities order, as announced by Attorney General Anthony G. Brown.

The fraudulent activities, which spanned from February 2021 to September 2023, involved Canubas making false representations to potential investors. He allegedly promised guaranteed returns, overstated revenue forecasts, and fabricated business pipelines, all of which were found to be untrue based on financial records. Canubas also reportedly disregarded requests for repayment from his clients. In total, the scheme resulted in the loss of approximately $294,250 from ten individual investors.

In addition to defrauding investors, Canubas failed to fulfill his financial obligations to his own staff. He allegedly made inconsistent payments to employees and independent contractors, sometimes through various applications and via checks that later bounced, while simultaneously diverting funds for personal use. These actions led to a total of $37,271 remaining unpaid to three individuals who provided services to his company.

Furthermore, Canubas continued to sell securities even after being issued a directive to cease by the Maryland Securities Commissioner. On June 23, 2022, an order was issued banning Canubas from selling securities due to unregistered sales, a lack of risk disclosure, and the misappropriation of investor funds for personal expenses. Despite this prohibition, he reportedly proceeded to sell securities to at least four more investors, including an elderly individual, mere days after receiving the ban.

Canubas is scheduled for sentencing on December 17, 2026, before Judge Fogleman in the Circuit Court for Montgomery County. At that time, he will be ordered to provide restitution to the victims of his scheme. The prosecution of this case involved efforts from the Attorney General’s Criminal Division and Securities Division, with commendations extended to Chief Katie Dorian, Chief Alexander Huggins, Assistant Attorney General Katharine Weiskittel, Investigative Auditor Harry Armstrong, Deputy Chief Gregory Jennings, and Montgomery County State’s Attorney John McCarthy for their roles.

This case highlights the risks associated with investment fraud, where victims not only lose money but also experience a breach of trust from individuals they believed in. For Maryland residents, this plea serves as a reminder of the legal protections in place and the commitment of state authorities to pursue those who engage in illegal financial activities. Individuals who have been victims of similar schemes are encouraged to report such activities to the appropriate authorities.

Article by Mel Anara, based upon information from the Maryland Attorney General.

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