Danville Man Admits To Running $9.5 Million Ponzi Scam

OAKLAND — Danville resident Edwin Emmett Lickiss, Jr. pleaded guilty to running a Ponzi scheme that defrauded investors out of a combined $9.5 million over more than 20 years, federal prosectors announced Wednesday.

Lickiss, 78, was convicted of one count of wire fraud and one count of money laundering for the scheme, which he operated from 1998 to 2024, according to a news release from the U.S. Attorney’s Office for the Northern District of California.

The Danville man admitted that from 1998 through September 2024, he defrauded more than 93 investors of at least $9.5 million. To attract investors, Lickiss falsely claimed that he would place victim funds into exclusive, safe, tax-free bonds, with some generating returns in excess of 20 percent. Lickiss also issued fraudulent promissory notes on the letterhead of his former firm, Foundation Financial Group.

In fact, Lickiss used subsequent victim funds to make payments to those who had invested earlier, consistent with a Ponzi scheme. Lickiss also diverted victim funds for his own use, including cash withdrawals, home renovations, travel, and payments on vehicles, mortgages, and personal credit cards.

Lickiss is also facing a civil enforcement action that was filed by the U.S. Securities and Exchange Commission in the Northern District of California.

The case, which was prosecuted by Assistant U.S. Attorney Ben Wolinsky with assistance from Lynette Dixon, resulted from an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. The SEC’s Atlanta Office also assisted.

Lickiss will next appear in court on Aug. 28 in front of U.S. District Judge Jon S. Tigar for his sentencing hearing, where he could face up to 20 years in prison for the wire fraud conviction and up to 10 years in prison for the money laundering conviction. Each count carries a $250,000 fine.