Cop-Targeting Scheme Raided: $860K Swiped from Lawmen!

SEC v. Michael D. Williams and CMI Capital, LLC — U.S. Securities and Exchange Commission Litigation Release No. 26646, dated September 23, 2026.

The SEC charged Michael D. Williams and his company, CMI Capital, LLC, for an investment scheme that defrauded at least 18 investors, many of whom were law enforcement officers. Williams allegedly raised about $860,000 by making false statements about fund performance and misappropriated approximately $384,000 for personal use. The defendants have agreed to a bifurcated settlement, subject to court approval, which includes injunctions and potential disgorgement and penalties.

In Plain English

Imagine someone promised to invest your money and make it grow a lot, but instead, they took a big chunk of it for themselves, like buying a fancy car or going on vacation. That's what happened here. The person in charge of the investment promised big returns but secretly used the money for personal spending. Now, they've agreed to settle with the authorities, which means they'll likely have to pay back some money and face restrictions.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Targeting Law Enforcement Michael D. Williams, through his company CMI Capital, LLC (also known as Check Mate Investments), allegedly convinced at least 18 investors to put money into two funds he controlled between October 2023 and August 2024. Many of these investors were current or retired law enforcement officers in South Florida, who trusted Williams because he worked for a third-party pension plan administrator.
2. False Promises of Returns Investors were allegedly told that one of the funds had a portfolio value exceeding $5 million and had achieved returns of over 140 percent. These claims were false and misleading, designed to entice investment.
3. Misappropriation of Funds Williams allegedly misappropriated approximately $384,000 of the investor and client funds. This money was used for personal expenses, including credit card bills, a sports car, and vacations.
4. Partial Repayments In August 2024, Williams began repaying some investors. He has reportedly returned more than $375,000 to certain investors, likely in an attempt to mitigate further complaints or detection.

The Enforcement Action

On September 23, 2026, the SEC charged CMI Capital, LLC and its founder Michael D. Williams for an alleged fraudulent investment scheme that raised approximately $860,000 from at least 18 investors, many of whom were law enforcement officers. The SEC alleged that Williams made false and misleading statements about fund performance and misappropriated approximately $384,000 for personal use. The defendants agreed to a bifurcated settlement, subject to court approval, which includes permanent injunctions against violating federal securities laws. Williams also faces an associational bar. The proposed judgments would order disgorgement with prejudgment interest against Williams and civil penalties against both defendants, with the amounts to be determined by the Court.

Named in this action: Michael D. Williams, CMI Capital, LLC.

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