(HedgeCo.Net) DaRayl D. Davis, charged by the SEC in December 2017 with raising millions of dollars from investors by selling them fictitious financial products, has been sentenced in a parallel criminal case to 160 months in prison and ordered to pay restitution of more than $7.1 million.

The criminal charges against Davis stem from the same misconduct alleged in the SEC’s complaint, filed in federal district court in Chicago. The complaint alleges that Davis hosted seminars and used his religious affiliation to gain investors’ trust. The complaint further alleges that Davis fabricated documents and made false statements to support the sale of fictitious financial products. As alleged, Davis did not invest the money he raised from his clients as he had represented, but instead used the money to fund a lavish lifestyle, repay prior investors, and further his fraudulent scheme.

The SEC’s litigation against Davis and relief defendant Affluent Advisory Group, LLC is ongoing. On March 26, 2018, the district court entered default judgment as to liability against Davis and Affluent Advisory Group, LLC. The court also held Davis in contempt for violating an asset freeze order previously entered by the court.