SEC Charges Michael Williams and CMI Capital in Alleged $860,000 Scheme Targeting Officers
SEC charges Michael D. Williams and CMI Capital over an alleged $860,000 scheme targeting at least 18 investors, as court-set penalties remain pending.
Summary
The SEC charged Port St. Lucie resident Michael D. Williams and CMI Capital, LLC, also doing business as Check Mate Investments, on September 23, 2026, in No. 26-cv-81300 in the Southern District of Florida. The complaint alleges Williams, CMI’s founder and manager, raised approximately $860,000 from at least 18 investors, many current or retired South Florida law enforcement officers, from at least October 2023 through August 2024. Investors trusted Williams partly because he worked for a third-party police and firefighter pension plan administrator. He allegedly used false statements to sell interests in two controlled funds, claiming one held more than $5 million and returned over 140 percent, while misappropriating approximately $384,000 for credit cards, a sports car and vacations. Williams began repayments in August 2024 and has returned more than $375,000 to certain investors.
The complaint alleges Securities Act of 1933 antifraud and registration violations and antifraud violations under the Securities Exchange Act of 1934 and Investment Advisers Act of 1940. Without admitting the allegations, Williams and CMI agreed to a bifurcated settlement, subject to court approval, including permanent injunctions. Williams would also be restricted from securities issuance, purchase, offers or sales outside certain personal-account transactions and accept a forthcoming associational bar. The court will determine Williams’ disgorgement and prejudgment interest and both defendants’ civil penalties. Melika Hadziomerovic conducted the investigation, supervised by Jessica M. Weissman, Fernando Torres and Stephanie N. Moot of the SEC’s Miami Regional Office. Michael Mikulic will lead the litigation under Russell Koonin.
Positives
- More than $375,000 has been repaid to certain investors since Williams began repayments in August 2024.
- Both defendants agreed to a bifurcated settlement, subject to approval by the Southern District of Florida.
- Proposed judgments provide for Williams to pay court-determined disgorgement and prejudgment interest.
- Permanent injunctions and Williams’ forthcoming associational bar would restrict future participation in securities activities.
Risks & concerns
- Approximately $860,000 was allegedly raised from at least 18 investors, many current or retired South Florida law enforcement officers.
- Approximately $384,000 was allegedly diverted to credit cards, a sports car, vacations and other personal expenses.
- Investors were allegedly told one fund exceeded $5 million in value and produced returns above 140 percent.
- The SEC charged Williams and CMI with antifraud violations under three federal securities statutes and Securities Act registration violations.
- Civil penalties, disgorgement and prejudgment interest remain undetermined and require court action.
