A California man has been sentenced to nine years in prison for operating a Ponzi scheme that defrauded dozens of victims over more than two decades.
Edwin Emmett Lickiss Jr., 78, of Danville pleaded guilty to wire fraud and money laundering after taking more than $9.5 million from at least 93 victims between 1998 and September 2024, according to the U.S. Attorney's Office for the Northern District of California.
The Scheme
Lickiss owned Foundation Financial Group, an investment firm that served clients in California, Idaho and other states. He told investors their money would be placed into exclusive tax-free bonds offering returns as high as 30 percent.
To build credibility, Lickiss claimed that family members had purchased the same bonds and stated he charged no fees because he had already accumulated sufficient wealth. He also assured investors they could withdraw their funds at any time.
The bonds did not exist.
How Funds Were Used
Prosecutors say Lickiss used money from new investors to pay earlier victims, a hallmark of Ponzi scheme operations. Additional funds were spent on personal expenses including home renovations, travel, vehicles, mortgages and credit card payments.
Notably, Lickiss continued accepting investments during a period when he was barred from broker work by FINRA, from August 18 through December 17, 2014.
The FBI and IRS Criminal Investigation handled the case.
