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Cornelius News

SEC obtains final judgment against Cornelius investment adviser

March 15. The U.S. District Court for the Western District of North Carolina has entered a final judgment against former Cornelius financial advisor Richard W. Davis. He is liable for disgorgement and prejudgment interest of $653,904 in connection with a scheme that defrauded 75 clients, taking $9.3 million of their investment funds.

According to an SEC complaint filed June 2, 2016, Davis solicited investments through the unregistered sale of securities in two unregistered hedge funds for which he acted as fund manager.

Davis spoke at events for “preppers” and survivalists to target investors who feared the stock market and the banking system, according to federal complaints. Professional athletes and fellow church members were among the victims. He ran the scheme from 2008 to at least 2015.


The complex case involved telling investors that their investments were growing, despite actually suffering losses.

Receivership Defendants included:

DCG Real Assets, LLC
DCG Commercial Fund I, LLC
H20, LLC
Finely Limited, LLC
DCG Funds Underwriting, LLC
DCG ABF Management, LLC
DCG Funds Management, LLC
Davis Capital Group, Inc.
Davis Financial, Inc.
DCG Partners, LLC
DCG Real Estate Development, LLC
Huntersville Plaza Phase One, LLC
Huntersville Plaza Phase Two, LLC
North Lake Business Park, LLC
Richard Davis Enterprises, LLC

According to the complaint, Davis also misappropriated a large part of the money he raised from investors for his own personal use.

His Bloomberg profile still mentions being named Businessperson of the Year by the Lake Norman Chamber

Davis maintained offices at 9624 Bailey Road and at one time lived in a sprawling lakefront home on Belle Isle Drive.

Davis has been barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.

He is in a low-security federal prison in Yazoo City, Miss. His release date is Feb. 11, 2025.

The SEC’s litigation was led by Patrick R. Costello and supervised by Frederick L. Block. Christopher Mathews, supervised by J. Lee Buck, of the SEC’s Enforcement Division assisted in the litigation.