A former Bay Area financial adviser was charged in connection with an alleged $9.5 million Ponzi scheme, the U.S. Department of Justice said Monday.
A federal grand jury indicted 77-year-old Edwin Emmett Lickiss Jr. on one count of wire fraud and one count of money laundering for allegedly defrauding at least 50 victim investors.
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The Department of Justice said that between 1998 and 2024, Lickiss — a financial adviser in Danville and Alamo — owned and operated Foundation Financial Group, a firm that provided investment services to investors in Northern California, Idaho and throughout the U.S.
The department said that Lickiss was a registered broker until 2014, when the Financial Industry Regulatory Authority suspended his broker’s license, but he allegedly continued to solicit and obtain investments from investors until September 2024.
The indictment alleges that Lickiss told investors he would invest their money in government bonds and other financial products, claiming he had exclusive access to bonds that paid high rates of returns, including rates higher than 20%. The indictment alleges Lickiss described the bonds as “safe, secure, and tax-free,” and falsely claimed that they could be redeemed at any time.
But instead of investing the funds as promised, the indictment alleges Lickiss used investors’ money to conduct a Ponzi scheme and pay other investors as well as for personal expenditures, including cash withdrawals, home renovations, travel and car, mortgage and credit card payments. The indictment alleges Lickiss obtained at least $9.5 million from no fewer than 50 investors.
As part of the scheme, Lickiss allegedly gave fake promissory notes outlining the terms of the investments, made lulling payments to victim investors to avoid suspicion and didn’t disclose that his broker’s license was suspended in 2014 and later lost in 2016.
The Department of Justice said the grand jury indictment was filed on July 17 and unsealed Monday.
Lickiss’ first court appearance is on Tuesday in San Francisco. The wire fraud charge carries a maximum of 20 years in prison and a $250,000 fine, while the money laundering charge carries 10 years in prison and a $250,000 fine, the Department of Justice said.
Lickiss also faces a civil enforcement action from the U.S. Securities and Exchange Commission in the Northern District of California.
