“Mark MacArthur, son of John MacArthur and board member of MacArthur’s Grace to You ministry, has been charged by the Securities and Exchange Commission of engaging in a scheme to defraud clients over a three year period from 2014 to 2017. According to the complaint, MacArthur and his partner, Robert Gravette, failed to disclose a costly conflict of interest:
‘Defendants Criterion Wealth Management Insurance Services, Inc. (“Criterion”), Gravette, and MacArthur were investment advisers. They owed their clients – who entrusted them with the discretionary management of their money – a fiduciary duty to act with loyalty, fairness, and good faith. This civil enforcement action arises from defendants’ breach of their fiduciary duty when failing to disclose a glaring conflict of their financial interests with those of their clients. From the spring 2014 through the summer 2017, defendants recommended that their advisory clients invest more than $16 million in four private placement funds, without disclosing that the fund managers for these investments had paid them more than $1 million in side compensation – income on top of the fees that defendants were already charging their clients directly.
‘For two of the private placement funds, the undisclosed compensation that defendants received reduced the investment returns that defendants’ advisory clients would have otherwise received. Defendants kept their clients in the dark as to all these material facts and, in doing so, they violated their fiduciary duty and defrauded their advisory clients.’
“According to the complaint, MacArthur and Gravette (both The Master’s University graduates) worked with another TMU graduate at a separate company to construct a scheme which allowed Criterion to pocket fees which should have gone to Criterion’s clients. The SEC claims MacArthur and Gravette failed to disclose the terms of investing to clients which put those clients at a disadvantage and depressed their investment returns.
“It is not stated in the complaint which clients received the lower returns or if any of the entities controlled by the MacArthurs were involved as investment clients. ”
The Apple Didn’t Fall Far From the Tree
“According to the complaint, MacArthur and Gravette (both The Master’s University graduates) worked with another TMU graduate at a separate company to construct a scheme which allowed Criterion to pocket fees which should have gone to Criterion’s clients.”
Most amazing that these three Master’s University grads constructed this scheme which enabled Mark Macarthur’s company, Criterion, to defraud its clients. And it seems clear that these Master’s U grads just flat out stole from their clients through this scheme. They defrauded by not disclosing a very costly conflict of interest. This reminds me of how John Macarthur also didn’t disclose a conflict of interest which enabled his son-in-law, Kory Welch, to profit from Grace To You among other “Christian” entities.
The SEC’s complaint against Mark Macarthur can be read here.
“A conviction for Securities Fraud will carry a lengthy prison sentence.”
Securities Fraud covers a wide range of illegal activities that involve the deception of investors or the manipulation of financial markets. The most commonly prosecuted acts of Securities Fraud include insider trading, broker misrepresentation, stock churning, and ponzi schemes.
Definition of Federal Securities Fraud
Under the Securities Act of 1933 and the Securities Exchange Act of 1934, Securities Fraud is defined as willfully engaging in deceptive practices intended to manipulate financial markets or induce investors to make financial investment decisions based on deceptive or false information…
“Securities” are broadly defined as any form of investment, such as stocks, bonds, bank notes, commodities, investment contracts, and options.
Conspiracy to Commit Securities Fraud
Conspiracy to Commit Securities Fraud occurs when two or more people work together to engage in the manipulation of financial markets or fraudulently induce investors to make financial decisions.
Importantly, Conspiracy to Commit Securities Fraud can, and usually is, charged against minor participants in securities fraud scheme.
The government charges minor participants with Conspiracy to Commit Securities Fraud because under 18 U.S.C. § 371, the penalties for Conspiracy to Commit Securities Fraud are the same as actual Securities Fraud, which results in minor participants cutting deals to testify against major participants in order to avoid the severe penalties Securities Fraud carries.
Penalties for Securities Fraud
Under federal law, the crime of Securities Fraud is a Class C felony, punishable by up to twenty years in prison, three years of supervised release, and $5 million in fines. Additionally, disgorgement of any profits will be ordered and any property obtained from the proceeds of the offense can be confiscated.
Under the United States Sentencing Commission, Guidelines Manual, §2B1, a person convicted of Securities Fraud would be assigned a base offense level between 6-36, which carries a guideline range of probation up to 33 months in prison before taking into account any aggravating or mitigating circumstances.
Importantly, probation is rarely given in federal cases and the amount of loss or aggravating offense characteristics associated with a particular Securities Fraud case can result in a significantly greater prison sentence than 33 months in prison.
Based on the activities cited which constitute “Federal Securities Fraud,” it looks like Mark Macarthur should be convicted and should do jail time, but he may not be convicted or do jail time due to his father’s influence within secret societies (Freemasonry).