• Home
  • Blog
  • News
  • Prevention
  • About Us
  • Archive
  • Contact Us
FraudsWatch
  • Financial Scams
    • Investment Scams
      • Ponzi Schemes
      • Pyramid Schemes
      • Pump And Dump Schemes
      • High-Yield Investment Programs (HYIPs)
      • Binary Options Scams
      • Forex Scams
      • Cryptocurrency Scams
      • Gold Investment Scams
    • Loan and Credit Scams
      • Advance Fee Loan Scams
      • Credit Card Scams
      • Debt Elimination Scams
      • Credit Repair Scams
      • Payday Loan Scams
      • Student Loan Scams
    • Banking and Payment Scams
      • Phishing Scams
      • Wire Transfer Scams
      • Fake Check Scams
      • Overpayment Scams
      • Account Takeover Fraud
      • Cash App Scams
  • Internet Scams
    • Online Shopping Scams
      • Auction and Retail Scams
      • Counterfeit Goods
      • Online Ticket Scams
      • Drop Shipping Scams
      • Free Trial Scams
    • Social And Dating Scams
      • Romance Scams
      • Military Scams
      • Fake Influencer Scams
      • Social Media Phishing
      • Online Extortion Scams
      • Catfishing Scams
    • Online Advertising and Business Scams
      • Fake Job Scams
      • Affiliate Marketing Scams
      • Fake Business Opportunities
      • Online Business Scams
      • Work-From-Home Scams
    • Email and Phishing Scams
      • Nigerian Prince Scams (419 Scams)
      • Lottery Scams
      • Inheritance Scam
      • Tech Support Scams
      • Ransomware Scams
  • Identity Theft
    • Personal Information Theft
      • Account Takeover Fraud
      • Tax Identity Theft
      • Medical Identity Theft
      • Child Identity Theft
      • Synthetic Identity Theft
    • Business Identity Theft
      • Business Email Compromise (BEC)
      • Corporate Identity Theft
      • Vendor Impersonation Scams
      • Business Loan Fraud
  • Property Scams
    • Rental Scams
      • Fake Rental Listings
      • Overpayment Scams
      • Rental Deposit Scams
    • Homeownership Scams
      • Mortgage Relief Scams
      • Home Improvement Scams
      • Deed Theft Scams
      • Land Scams
  • Travel Scams
    • Timeshare Scams
    • Travel Club Scams
    • Vacation Rental Scams
    • Discount Travel Scams
    • Fake Travel Agency Scams
  • More..
    • Report Fraud
      • Report Scammers
      • Scammer Email Addresses
        • AOL Aim Live ATT
        • Email Man-Male Scammers
        • Gmail.com
        • Hotmail.com
        • Russian Email Scam
        • Yahoo.com
        • Email Scam List
        • Email Scams Examples
      • List of Fraud And Scam
    • Fraud Prevention
    • Health and Wellness Scams
      • Miracle Cure Scams
      • Weight Loss Scams
      • Fake Online Pharmacies
      • Health Insurance Scams
      • Medical Equipment Scams
    • Charity And Fundraising Fraud
      • Fake Charities
      • Disaster Relief Scams
      • Crowdfunding Scams
      • Social Media Fundraising Scams
    • Elderly and Vulnerable Targets
      • Grandparent Scams
      • Medicare Scams
      • Funeral and Cemetery Scams
      • Financial Exploitation of the Elderly
    • Legal Scams
      • Immigration Scams
      • Tax Evasion Scams
      • Money Laundering Scams
      • Insider Trading Scams
  • Log In
Home » Fraud » Financial Fraud: Sherman Carl Vaughn Pleaded Guilty In An Investment Fraud Scheme

Financial Fraud: Sherman Carl Vaughn Pleaded Guilty In An Investment Fraud Scheme

September 17, 2016 by FraudsWatch
Financial Fraud

Former Owner of Investment Firms Pleads Guilty to $9 Million Fraud

RICHMOND, Va. – Sherman Carl Vaughn, 45, of Blackstone, pleaded guilty today to charges related to his role in an investment fraud scheme that caused more than $9 million in losses to over 50 investors.

According to the statement of facts filed with the plea agreement, in 2009, Vaughn and co-conspirator Merrill Robertson, Jr., 36, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth management, LLC. From 2009-2016, Vaughn and Robertson solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and the National Football League, while Vaughn focused on developing investment opportunities.

According to the statement of facts, Vaughn and Robertson led individuals to believe they have experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.

As a result of this conspiracy, Vaughn and Robertson fraudulently obtained more than $9 million from over 50 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.

Vaughn faces a maximum penalty of 20 years in prison when sentenced on December 14. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the guilty plea was accepted by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Katherine Lee Martin is prosecuting the case.

This investigation was initiated based on information received from the U.S. Securities and Exchange Commission (SEC).

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-111.

Original PressReleases…

Tags: Financial Fraud, Investment Fraud

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Categories

  • AOL Aim Live ATT
  • Celebrities Scammed
  • Credit Card
  • Credit Scam
  • Email Man-Male Scammers
  • Email Scam List
  • Email Scams Examples
  • Financial Recovery Verticals
  • Fraud
  • Fraud News From World
  • Fraud Prevention
  • Gmail.com
  • Hotmail.com
  • Insurance
  • Jobsearch Scams
  • Loans
  • Military Scammer
  • Mortgage
  • Nigerian 419
  • Report Fraud
  • Romance Scammer
  • Russian Email Scam
  • Scammer
  • Scams Ways
  • Shopping & Saving Money
  • Spam
  • White-Collar Crime
  • Yahoo.com

Tags

Bank Fraud Consumer Fraud Credit Card Fraud Cyber Crime Cybercrime Cybersecurity Dating Scammer Elder Fraud Elder Justice Email Email Scam Email Scam Example Email Scam Examples Email Scams False Claims Act FBI Financial Fraud Fraud Health Care Fraud Healthcare Fraud Identity Theft Insurance Insurance Fraud Investment Fraud Loan Fraud Loan Scam Mail Fraud Medicare Fraud Military Scammer Military Scammers Money Laundering Mortgage Mortgage Fraud PayPal Phishing Public Corruption Romance Scammer Romance Scammers Scam Scammer Scammers scams Tax Evasion Tax Fraud wire fraud

Recent Posts

  • Lost Money in an Investment Scam? A 2025 Guide to Financial Recovery July 27, 2025
  • Michigan Home Health Agency Pays $334K to Settle Whistleblower Fraud Allegations: A Deep Dive into a Broken System July 13, 2025
  • Survey Note: Detailed Analysis of Murex Management’s Financial Fraud Case July 13, 2025
  • The Unseen Battlefield: Your Definitive 2025 Guide to Advanced Scam Detection July 9, 2025
  • Bulletproof Betrayal: Inside the $5.2 Million ShotStop Fraud That Sold Counterfeit Body Armor to America’s Law Enforcement July 8, 2025
  • Home
  • Blog
  • About Us
  • Contact Us
  • Disclaimer
  • PRIVACY POLICY
  • TERMS AND CONDITIONS
  • Credit Card
  • Credit Scam
  • Insurance
  • Loans
  • Mortgage
  • Fraud Prevention
  • Celebrities Scammed
  • Jobsearch Scams
  • Military Scammer
  • Nigerian 419
  • Romance Scammer
  • Scammer
  • Home
  • Blog
  • About Us
  • Contact Us
  • Disclaimer
  • PRIVACY POLICY
  • TERMS AND CONDITIONS

© 2025 FraudsWatch. All Rights Reserved.

Back to Top