Federal prosecutors charged a longtime San Francisco financial advisor with running a decades-long Ponzi scheme that allegedly bilked investors out of at least $9.5 million through fake investments.

Alleged $9.5M Ponzi Scheme That Lasted Three Decades

Edwin Emmett Lickiss Jr., 77, faces wire fraud and money laundering charges after a federal grand jury indicted him last week. The alleged scheme ran from 1998 through September 2024, targeting at least 50 investors across California, Idaho and other states.

Lickiss operated Foundation Financial Group from offices in Danville and Alamo, serving as a registered broker until 2014 when financial regulators suspended his license. Prosecutors say he kept soliciting investments for another decade despite losing his credentials.

The alleged fraud centered on nonexistent bonds that Lickiss claimed paid returns exceeding 20%. He told investors these were exclusive government securities that were "safe, secure, and tax-free" and could be cashed out anytime, according to court documents.

To maintain the illusion, Lickiss allegedly created fraudulent promissory notes on his company letterhead and made occasional "lulling payments" to investors, describing them as bond interest when they were actually funds stolen from newer victims.

Recently, FinanceMagnates.com reported on another alleged multimillion-dollar Ponzi scheme involving nearly $100 million and more than 200 defrauded investors over a period of almost three years.

How the Scheme Allegedly Worked

Instead of purchasing any bonds, prosecutors say Lickiss used incoming investor money to pay earlier clients in classic Ponzi fashion. He also spent heavily on personal expenses, including home renovations, travel, car payments and mortgage costs.

Lickiss went to elaborate lengths to appear legitimate, according to the indictment. He claimed he and his family had invested in the same bonds and told clients he wouldn't charge fees because the investments had made him so wealthy.

When investors asked for their money back, he allegedly made excuses about family illnesses, bank holds on funds, or being under audit.

Crucially, prosecutors say Lickiss never told investors about his 2014 suspension or that he lost his broker's license entirely in 2016.

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Legal Proceedings and Penalties

Lickiss appeared in federal court in San Francisco this week for his initial hearing before U.S. Magistrate Judge Nathanael Cousins. He faces up to 20 years in prison on the wire fraud charge and 10 years for money laundering, plus fines of up to $250,000 on each count.

The SEC has also filed a parallel civil case against Lickiss in the same federal district. As with all criminal cases, Lickiss is presumed innocent until proven guilty in court.