A former LPL Financial-affiliated advisor who ran a $1.4 million Ponzi scheme was sentenced to 63 months in prison in North Carolina on Monday.

Charles Caleb Fackrell, who pleaded guilty to one count of securities fraud in April 2016, must also serve three years under court supervision after his release from prison and pay close to $820,000 to about 20 victims of his scam, according to the U.S. Attorney’s Office for the Western District of North Carolina.

The ex-advisor was affiliated with LPL from 2010-2014 and was based in Booneville, North Carolina. Earlier, he worked for Wells Fargo Advisors, Morgan Stanley and SunTrust Investment Services, according to FINRA Broker Check.

Fackrell “used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments with “Robin Hood, LLC,” “Robinhood LLC,” “Robin Hood Holdings, LLC,” “Robinhood Holdings, LLC” and related entities,” the U.S. Attorney’s Office said.

The scam took place from about May 2012 to December 2014 and involved entities controlled by Fackrell and through which he could access the clients’ funds.

“Fackrell  … betrayed his victims who believed his sales pitch and trusted him with their hard-earned money. Fackrell took that money and used it to enrich himself and to perpetuate his fraud,” said U.S. Attorney Jill Rose, in a statement. “His dishonesty caused a lot of financial hardship to a lot of people, and for that, Frackrell will serve a well-deserved prison sentence.”

Court records state that the ex-rep told clients their money would “be invested in, or secured by, gold and other precious metals, when in fact Fackrell spent only a fraction of investor money on such assets,” the court explained.

He also falsely told victims that Robin Hood was “a very safe investment, paying guaranteed annual returns of 5% to 7%.”

Fackrell spent most of the stolen money on personal expenditures, such as hotel rooms, groceries and medical bills.

He moved over $700,000 of his clients’ money back to other investors in Ponzi-like payments. 

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