Lexington Investment Advisor Douglas Hawkins Found Guilty of Fraud, Gets 10 Years in Prison

UPDATE: Douglas Hawkins was sentenced to ten years in prison in May 2023.

Lexington, Ky–A Lexington Investment Advisor and Attorney, Douglas Hawkins, of Richmond, was found guilty late Friday by a federal jury in Lexington, Kentucky, on charges of investment advisor fraud, securities fraud, and two counts of mail fraud, according to a DOJ release. The investigation was conducted by the United States Postal Inspection Service and the Kentucky Department of Financial Institutions.

According to the evidence presented in court, while working as an investment advisor, Hawkins encouraged clients to invest in securities, which were properties in Jackson, Mississippi. Clients invested over $2 million in the properties, but Hawkins failed to disclose crucial information about the properties, including that many were uninhabitable, the rent collection was difficult, and the properties were often subject to theft and vandalism.

Hawkins neglected to inform his clients that their investment money would be used for purposes other than their properties, including paying other investors and buying a Harley Davidson for an employee. The indictment against Hawkins was handed down in October 2021.

Assistant U.S. Attorneys Andrea Mattingly-Williams and Will Moynahan represented the United States in the case.

Hawkins is scheduled to appear for sentencing on April 24, 2023, and could face up to five years in prison on the investment advisor count, up to 20 years in prison on the securities fraud count, and up to 20 years in prison on each count of mail fraud. The Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence, and Hawkins may also face fines and a judgment of restitution.