Amarillo, Texas Businessman Charged with Securities Fraud
A businessman in Amarillo, Texas has been arrested for investment fraud involving $1 million and at least 100 people.
Last week, Amarillo police arrested John Langford of Langford and Associates on nine felony charges. He faces charges of securities fraud and selling unregistered securities. 
He is being held at the Potter county jail on a $500,000 bond for each charge.
According to reports, Langford promised high rates of return to new investors. He then used new investor funds to pay off earlier investors. According to the district attorney, John Langford probably does not own sufficient assets to cover the amount he has defrauded. Anxious investors have been contacting the DA, worried about their investments. So far, Sims says, the number of investors seems to be more than 100 people, and these numbers are expected to increase as the investigation progresses.
We are still waiting to hear more details from the DA’s office but to securities attorneys, this much is clear:
- Langford seems to have operated a Ponzi scheme.
- A number of elderly people appear to have been included as victims. Sims has confirmed that many of the victims are senior citizens who purchased annuities, but received no benefits when Langford defaulted.
Langford is facing a total of nine felonies:
- One second degree charge of fraudulent sales of securities
- One third degree felony charge of selling securities without being a registered dealer
- Three third degree charges of selling unregistered securities in Texas
- Four first degree felony charges of fraudulent sales of securities
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According to Sims, his office worked together with the Securities and Exchange Commission (SEC) for about two weeks before moving in. Sims is asking investors who purchased annuities from Langford to contact the DA's office.
Hopefully the SEC's proposed plans to crack down on securities fraud with specialized groups will come to light and operate succesfully. Too many ponzi schemers and investment fraudsters are still on the loose, taking advantage of naive investors.
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