Lexington investment advisor used money to pay other investors, buy employee motorcycle

LEXINGTON, Ky. (FOX 56) – A Lexington investment advisor and attorney was found guilty of fraud.

The Department of Justice said Douglas Hawkins, of Richmond, was found guilty later Friday of investment advisor fraud, securities fraud, and two counts of mail fraud. The department said evidence at the trial showed Hawkins encouraged his clients to invest in properties in Jackson, Mississippi.  

Evidence showed clients invested over $2 million in the properties, but  Hawkins withheld that many of the properties were uninhabitable, rent collection was burdensome, and the properties were often subject to theft and vandalism. 

They also said he failed to tell his clients their investment money would be used for purposes other than their properties, including paying other investors and buying a Harley Davidson for an employee.

Hawkins was indicted in October 2021 and is scheduled for sentencing on April 24, 2023.