The U.S. Secret Service is investigating a Charlotte investment adviser for “possible investment fraud,” according to a letter obtained by the Observer.
The Secret Service’s Charlotte field office in March sent the letter and a questionnaire to people who may have made investments with Richard Wyatt Davis Jr. or one of his “entities, companies, or investment funds.” The form asks for details about the investments, including sales materials that were used and the types of returns investors were told to expect.
Matthew Quinn, assistant special agent in charge of the Charlotte field office, said the investigation was ongoing and declined to comment further.
While best known for its work to protect U.S. presidents and vice presidents, the Secret Service’s original mandate was to investigate counterfeiting of U.S. currency. The agency also has the authority to investigate financial institution fraud, computer and telecommunications fraud and other financial crimes.
Davis did not return calls seeking comment. A lawyer who has represented him in the past declined to comment.
Davis’ LinkedIn page says he is the president of the Davis Capital Group, which provides investors with “unique access to premier assets in the mining, natural resource, commodities, and commercial real estate industries.” He is also the founder of Best FQ, which provides “financial intelligence” through videos, emails and personal consultation and advice.
“His prescience and business acumen have made Mr. Davis a go-to authority and mentor to many ultra-wealthy individuals who are actively seeking better methods for protecting and growing their assets, while preserving their legacy,” his LinkedIn page says.
Davis has structured nearly $1.5 billion in debt and equity investments, and has founded more than a dozen business entities, “many of which he continues to run or advise from his offices in Charlotte,” the page says.
Davis’ business dealings have been the subject of legal action in recent years.
In 2013, Pennsylvania resident Gwynn Mangler filed a breach of contract suit against Davis in Mecklenburg County Superior Court.
According to the suit, Mangler in 2010 provided Davis with $325,000 for investment purposes, but Davis only had authority to invest $125,000 of that amount. The complaint says Davis invested the additional $200,000 anyway, and eventually Mangler demanded that Davis return all of the money.
Davis returned $200,000 in February 2013, and in March 2013 agreed to a settlement to repay the remaining $125,000, plus $12,500 in earnings, in five installments, according to the suit. Davis only made the first payment, and Mangler filed suit, according to the complaint.
In November 2014, Superior Court Judge Yvonne Mims Evans found Davis in breach of the settlement agreement. Davis filed an appeal with the N.C. Court of Appeals, according to court documents.
Davis is also the manager of a commercial real estate development, Huntersville Plaza Phase Two, that filed for Chapter 11 bankruptcy protection in 2013, court records show. A lender to the development has also filed a breach of contract lawsuit.