MICHIGAN - On Friday, Michigan Attorney General Dana Nessel announced Stanley Alan Williams, Jr., 41, of Auburn Hills, has pleaded no contest to several felonies for his role in a 2010 embezzlement scheme that defrauded four investors out of more than $124,000.
His plea was made Monday before Oakland County Circuit Court Judge Cheryl A. Matthews.
In 2010, Williams – through his purported investment companies, Karmanos Coleman Taubman, Inc (KCT) and Pechcoet Management, LLC. – invested a total of nearly $200,000 on behalf of his clients and embezzled more than half of the amount he invested; his clients lost the remainder in the investment market.
Authorities said Williams’ company, KCT, is not affiliated with the Taubman or Karmanos families.
Upon further investigation by the Attorney General’s office, investigators determined that neither KCT and Pechcoet were registered under the Security Code according to the Michigan Department of Licensing and Regulatory Affairs.
The Attorney General’s investigation began after LARA investigated and issued a Cease and Desist Order against Williams, to which Williams did not respond. The Attorney General’s Financial Crimes Division picked up the investigation, leading to the charges against him, which include:
• Two felony counts of Embezzlement by an Agent – a maximum sentence of 15 years in prison or a $25,000 fine or both;
• One felony count of Larceny by Conversion – a maximum sentence of five years in prison or a $10,000 fine or three times the value of the property (whichever is greater);
• Three felony counts of securities fraud – a maximum sentence of five years in prison or a $500,000 fine or both; and
• Two felony counts of Using a Computer to Commit a Crime – a maximum sentence of 10 years in prison or a $10,000 fine or both.
“Michiganders investing for the future shouldn’t have to think twice about who they trust with their hard-earned money,” Nessel said. “My office is steadfast in its commitment to hold those who defraud our state residents accountable.”
Williams will be sentenced before Judge Matthews at 1:30 p.m. Monday, July 22, 2019.
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