2011
A Limestone County jury today sentenced Reginald Lee Clark to 25 years in state prison after convicting him of stealing more than $400,000 from clients of his investment advisory business. The 12-member jury convicted Clark on a charge of theft on May 25.
Clark was not registered to sell securities in Texas, but he did business as Clark Investment Advisors in Limestone County and surrounding areas. He lives in Woodway, outside Waco.
Clark was tried on the theft of $415,558 from several of his clients. He stole amounts ranging from $15,000 to nearly $152,000 from clients. In some instances Clark convinced clients to withdraw funds from legitimate investments and invest the money with Clark Investment Advisors. He provided false statements to clients indicating fictitious returns.
Clark was also president of the Groesbeck High School Band Boosters Club and received a blank check from the group to reimburse him for his future expenditures on club supplies. Instead, Clark wrote the check to his investment business in the amount of $3,000 and spent the money on personal expenses. He later repaid the club, but did so with funds he took from a separate client.
"The Clark case is a costly reminder that the first step an investor should take in dealing with a financial salesperson is to check whether the person is registered with the State Securities Board,"Securities Commissioner Benette L. Zivley said. "The investment itself must also be registered, with some exceptions."
"I urge investors not to commit any money to a financial professional without first doing a regulatory background check,"Zivley said. The State Securities Board offers free regulatory background checks on registered individuals and can inform investors when an individual is not registered.
Dale Barron and Alexis Goldate, attorneys in the enforcement division of the State Securities Board, prosecuted Clark. The State Securities Board thanks the Limestone County Attorney's Office for its cooperation and assistance.