The U.S. Securities and Exchange Commission charged CMI Capital LLC and its founder and manager, Michael D. Williams, with conducting an alleged fraudulent and unregistered investment scheme that raised about USD 860,000 from at least 18 investors between October 2023 and August 2024. Many investors were current or retired South Florida law enforcement officers who knew Williams through his work for a third-party police and firefighter pension plan administrator. The complaint alleges that Williams and CMI promoted two purported funds using fabricated returns, fictitious portfolio values and cropped screenshots of simulated trades. They claimed one fund was worth more than USD 5 million and had returned over 140%, although trading for the funds allegedly produced losses of at least USD 428,000. Williams allegedly diverted about USD 384,000, or 45% of the capital raised, to personal expenses. More than USD 375,000 was later repaid to certain investors. Without admitting the allegations, CMI and Williams agreed to proposed judgments that remain subject to court approval. The judgments would impose permanent injunctions, restrict Williams from participating in securities transactions other than certain personal account activity, and require disgorgement with prejudgment interest and civil penalties in amounts to be determined by the court. Williams also agreed to a forthcoming associational bar.

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