Former MD financial services provider pleads guilty to theft scheme, securities fraud

A former financial services provider pleaded guilty to a theft scheme and securities fraud charges in Anne Arundel County Circuit Court, the Maryland Attorney General‘s Office announced this week.

Clarence Woods Jr., 62, pleaded to the three charges before Judge Mark W. Crooks earlier this month, court records show. In all, Woods owes more than $573,000 in restitution to 16 victims, the Attorney General’s Office said.

The office charged that Woods, of Glen Burnie, used a Ponzi-style fraudulent investment scheme to defraud 13 investors of more than $380,000 between July 2017 and April 2023. Ponzi schemes involve paying existing investors with the money provided by new investors rather than profits earned by a fraudulent “business.”

Woods was also charged with stealing over $200,000 through a separate theft scheme. The Attorney General’s Office accused Woods of fraudulently transferring money out of a client’s bank account and depositing it into his own personal bank account.

“When financial professionals abuse the trust Marylanders place in them, they don’t just steal their clients’ money–they steal their peace of mind and threaten their families’ financial futures,” Attorney General Anthony Brown said in a news release announcing the guilty plea. “Our office will always hold accountable those who exploit their position to defraud Marylanders and jeopardize their financial security.”

Woods faces sentencing on the two felony theft scheme charges and the misdemeanor securities fraud charge on Oct. 30 in Anne Arundel County Circuit Court. His attorney listed in court records, Booth M. Ripke, did not return a call requesting comment Thursday.

An Investment Adviser Public Disclosure report for Woods shows that regulatory action was brought against him by the state of Maryland in October 2023. He ultimately agreed to sanctions, including a permanent ban and a financial penalty of $760,895, though that was waived, according to the report. The report lists the allegations against Woods as “Borrowed money from clients or sold the notes.”

The report also shows that Woods was allowed to resign from a previous job in 2010 after findings that he had violated his company’s policies regarding the use of the company’s corporate card. The allegations were not securities-related, according to the report.

The Attorney General’s Office brought the charges against Woods via criminal information on June 24, court records show. When he announced the plea, Brown thanked Fraud and Corruption Unit Chief Alexander Huggins, Investigative Auditor Aimie Haupt, and Assistant Attorney General Ryan Cornell for bringing the case, and Anne Arundel County State’s Attorney Anne Colt Leitess for assisting with the prosecution.