A North Augusta man was arrested and charged with counts related to securities fraud after state investigators accused him of taking money meant for a new real estate development and instead converting it for his personal use.
David Thompson was arrested last week, according to an announcement from the State Attorney General’s Office. He faces two counts for breach of trust and another for forgery. He was released on a $30,000 bond.
The Attorney General’s order accuses Thompson of selling at least $360,000 in membership interests for a corporation he formed called Mossy Development, LLC. The money was supposed to be used to develop a North Augusta subdivision called Mossy Oaks.
However Attorney General Alan Wilson said Thompson instead diverted that money to his own personal use and those of other entities he owned.
A “cease-and-desist” order from the office says Thompson never registered with South Carolina to sell the interests, known as securities, which state law requires.
Thompson was also ordered to pay a $2,000 fine.
