SEC Charges CMI Capital and Michael Williams in Alleged $860,000 Fraud
SEC charges CMI Capital and Michael D. Williams over an alleged $860,000 scheme involving 18 investors, many current or retired law enforcement officers.
Summary
In Release 2026-92 on Sept. 23, 2026, the SEC charged CMI Capital LLC, also doing business as Check Mate Investments, and founder and manager Michael D. Williams of Port St. Lucie, Florida, with an alleged scheme that raised about $860,000 from at least 18 investors, many current or retired South Florida law enforcement officers. From at least October 2023 through August 2024, Williams allegedly used false statements to sell interests in two funds he controlled. Investors who trusted him through his work for a third-party police and firefighter pension plan administrator were allegedly told one fund held more than $5 million and generated returns exceeding 140 percent. SEC Miami Regional Office Director Stephanie N. Moot said the defendants sent cropped graphics purporting to show extraordinary trading profits.
The complaint alleges Williams diverted about $384,000 of investor and client money to credit card balances, a sports car, vacations, and other personal expenses. He began repayments in August 2024 and has returned more than $375,000 to certain investors. The complaint, filed in the U.S. District Court for the Southern District of Florida, alleges antifraud and registration violations under the Securities Act of 1933 and antifraud violations under the Securities Exchange Act of 1934 and Investment Advisers Act of 1940. Without admitting the allegations, both defendants agreed to a bifurcated settlement, subject to court approval, including permanent injunctions. Williams would also face securities activity restrictions, except certain personal-account transactions, disgorgement plus prejudgment interest, a forthcoming associational bar, and civil penalties in amounts the court will determine.
Positives
- Williams has repaid more than $375,000 to certain investors after beginning repayments in August 2024.
- Both defendants agreed to a bifurcated settlement, subject to approval by the U.S. District Court for the Southern District of Florida.
- Proposed judgments would permanently prohibit CMI Capital and Williams from further violations of the charged federal securities laws.
- Williams agreed to a forthcoming associational bar and restrictions on securities activities outside certain personal-account transactions.
- The court would determine disgorgement plus prejudgment interest against Williams and civil penalties against both defendants.
Risks & concerns
- Approximately $860,000 was allegedly raised from at least 18 investors, many current or retired South Florida law enforcement officers.
- About $384,000 was allegedly diverted to credit card balances, a sports car, vacations, and other personal expenses.
- Investors were allegedly shown cropped graphics supporting claims of returns exceeding 140 percent and a portfolio worth more than $5 million.
- The SEC alleges violations of the Securities Act, Exchange Act, and Investment Advisers Act antifraud or registration provisions.
- Settlement terms remain subject to court approval, while disgorgement, prejudgment interest, and civil penalty amounts have not been determined.
