CHARLOTTE, N.C. (QUEEN CITY NEWS) — A North Carolina man was federally indicted for reportedly defrauding at least 19 people near retirement age of more than $3.6 million, U.S. District Attorney Dena King announced Wednesday.
48-year-old Mac Billings of Raleigh, a licensed CPA, is accused of engaging in securities fraud through his company, Alpha Finance Company, in Sparta, North Carolina between 2012 and 2019, according to the indictment.
Billings allegedly solicited 19 people in Alleghany, Wilkes and Surry Counties to invest in ALPHA with “debenture notes,” a type of debt instrument typically not backed by collateral.
He’s accused of falsely promising the investors that their money would be used to make high-interest consumer loans that they would receive interest payments from.
Prosecutors said Billings used little of the investors’ money to make new consumer loans, instead, using it to make payments to other investors and to pay himself over $1 million in salary and distributions from ALPHA.
The indictment also alleged that Billings used investment statements, emails and meetings to mislead investors into believing that ALPHA was a profitable company and that their investments were safe.
Prosecutor said he failed to disclose information about ALPHA’s financial and business troubles, including that he sold or mortgaged most of the company’s assets to hard money lenders.
Billings also defaulted on lawsuits filed by the North Carolina Commissioner of Banks and the North Carolina Attorney General’s Office that claimed he failed to comply with state laws governing consumer finance and retail installments.
The NCCOB revoked ALPHA’s license due to non-compliance with North Carolina’s Consumer Finance Act. Courts in Alleghany and Wake Counties also declared ALPHA’s loan null and void, leaving the victims with no assets to recoup their losses, prosecutors.
If convicted, Billings faces a maximum prison term of 20 years and a $5 million fine.