NEW YORK (WWBT) - The former CEO of Richmond-based Live Well Financial was arrested in Richmond on Thursday on charges of bank fraud.
Michael Hild, 44, of Richmond, faces charges of securities fraud, wire fraud, bank fraud, conspiracy to commit securities fraud and conspiracy to commit wire and bank fraud.
The charges carry a maximum of 115 years in prison and fine of $5 million, or twice the gross gain or loss from the offense.
Live Well Financial, which Hild founded, filed for bankruptcy in June.
According to the U.S. Attorney’s Office for the Southern District of New York, Hild was involved in a scheme from September 2015 through May 2019 to fraudulently inflate the value of bonds owned by Live Well to convince securities dealers to approve loans.
Prosecutors say the scheme allowed Live Well to increase is portfolio’s value from approximately $50 million to $500 million from 2014 to 2016.
Additionally, indictments were unsealed against former Live Well CFO Eric Rohr and head trader Darren Stumberger for their participation in the scheme. Porsecutors said both Rohr and Stumberger have pleaded guilty and are cooperating with the investigation.
Hild’s assets, including real estate and business interests in the Richmond area that are believed to have been purchased with the proceeds from the fraud scheme, were placed under a restraining order following the indictment.
The Securities and Exchange Commission has also filed civil charges against Hild.
Copyright 2019 WWBT. All rights reserved.