ANNAPOLIS, MD—A Glen Burnie man pleaded guilty to a felony theft scheme and securities fraud that defrauded 16 victims out of more than half a million dollars, Maryland Attorney General Anthony G. Brown announced Wednesday.
Clarence Woods Jr., 62, pleaded guilty in Anne Arundel County Circuit Court on Sept. 4 to two counts of felony theft scheme over $100,000 and one count of securities fraud.
According to Brown’s office, Woods, a former financial services provider, operated a Ponzi-style scheme that took more than $380,000 from 13 investors. He also fraudulently transferred over $200,000 from a separate client’s bank account into his own.
In total, Woods owes $573,161 in restitution to his victims.
“When financial professionals abuse the trust Marylanders place in them, they don’t just steal their clients’ money — they steal their peace of mind and threaten their families’ financial futures,” Brown said in a statement. “Our Office will always hold accountable those who exploit their position to defraud Marylanders and jeopardize their financial security.”
A Ponzi scheme is a form of investment fraud where earlier investors are paid with money from new investors, giving the illusion of a profitable venture.
Woods is scheduled to be sentenced on Oct. 30.
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