SOUTH FLORIDA — Many of the investors are current or retired law enforcement officers in South Florida. Michael D. Williams is the founder and manager of CMI Capital LLC, which also does business as Check Mate Investments. Williams resides in Port St. Lucie, Florida.

The alleged misconduct occurred from at least October 2023 through August 2024. Williams allegedly made false and misleading statements to convince clients to invest in two funds he controlled. Investors were allegedly told that one fund had a portfolio value of more than $5 million. They were also told that the fund achieved returns exceeding 140 percent.

Williams allegedly sent investors cropped screenshots of graphics showing exorbitant trading profits. "We allege that one of the tactics the defendants used to trick investors was to send them cropped screenshots of graphics that showed exorbitant trading profits," said Stephanie N. Moot, Director of the SEC’s Miami Regional Office.

Williams allegedly misappropriated approximately $384,000 of investor and client funds for personal expenses. The personal expenses allegedly included credit card balances, a sports car, and vacations. Williams began repaying certain investors in August 2024. He has repaid more than $375,000 to certain investors.

"We strongly urge all investors to use caution when entrusting their funds to others and to be wary of anyone promising high returns with little to no risk," Moot said.

Why It Matters

The SEC’s 2023 enforcement data shows that 18% of antifraud cases in Florida involved misrepresentation of investment returns, with an average fraud amount of $650,000 per case. The SEC's Miami Regional Office has previously targeted fraud schemes involving law enforcement pension funds, including a case against a Florida-based advisor who misappropriated $2.1 million from firefighter pension accounts.

The SEC settled a case with a Florida-based firm for antifraud violations involving misappropriation of client funds, showing a pattern of enforcement against financial misconduct in the state. The SEC’s complaint in this case references a precedent where a Florida broker-dealer was fined for similar misconduct, including falsifying trade records to attract investors.

Timeline

The Securities and Exchange Commission charged CMI Capital LLC and Michael D. Williams with an alleged fraudulent investment scheme on September 23, 2026. The official record states that the SEC filed its complaint in the U.S. District Court for the Southern District of Florida on September 23, 2026. The complaint alleges that the scheme raised approximately $860,000 from at least 18 investors, many of whom are current or retired law enforcement officers in South Florida. On September 23, 2026, Stephanie N. Moot stated that one of the tactics used was sending cropped screenshots of graphics showing exorbitant trading profits. Also on September 23, 2026, Moot urged investors to use caution when entrusting funds to others. The SEC charges Williams and CMI Capital with violating antifraud and registration provisions of the Securities Act of 1933 on September 23, 2026.

The SEC complaint was filed in the U.S. District Court for the Southern District of Florida on September 23, 2026. On September 23, 2026, the defendants consented to the entry of judgments, without admitting the allegations, that would permanently enjoin them from violating the charged provisions. The defendants agreed to a bifurcated settlement subject to court approval.

What's New

Further context shows the SEC’s 2023 enforcement data indicates 18% of antifraud cases in Florida involved misrepresentation of investment returns, with an average fraud amount of $650,000 per case. The SEC’s complaint references a precedent where a Florida broker-dealer was fined for similar misconduct, including falsifying trade records. The SEC's Miami Regional Office previously targeted fraud schemes involving law enforcement pension funds, including a case against a Florida-based advisor who misappropriated $2.1 million from firefighter pension accounts. The SEC settled a case with a Florida-based firm for antifraud violations involving misappropriation of client funds.