Florida Man Pleads Guilty to Investment Fraud Scheme
|U.S. Attorney’s Office May 20, 2014|
MINNEAPOLIS—Last week in federal court in St. Paul, a 59-year old Leesburg, Florida man pleaded guilty to defrauding investors and investment fund managers out of more than $2,500,000. Gary Richard Vibbard, formerly of Wayzata, pleaded guilty to mail fraud. Vibbard, who was indicted on August 21, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Vibbard admitted that from 2008 to 2010, he engaged in a scheme to defraud investors and investment fund managers through the sale of investments in R. Capital Advisors (RCA), a Minnesota company created, owned, and managed by Vibbard. Vibbard admitted that, instead of paying investors their profits as planned, RCA resorted to repaying earlier investors with funds provided by later investors. In the plea agreement, Vibbard acknowledged that the scheme defrauded more than 10 victims of funds totaling between $2,500,000 and $7,000,000.
The U.S. Attorney’s Office and Vibbard have agreed to recommend a 63-month prison sentence to Judge Magnuson. In addition, Vibbard will be ordered to pay restitution and could be ordered to pay a fine. A sentencing hearing is yet to be scheduled.
This case is the result of an investigation by the United States Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Robert M. Lewis.