Shari Mattingly Bevan, once a trusted financial broker, became a notorious figure after her involvement in a massive $100 million Ponzi scheme. This scandal led to the loss of her license and tarnished her reputation within the financial industry. Despite her criminal past, Bevan has reinvented herself, now claiming to be a lawyer and financial planner. Operating under the name Shari Mattingly Bevan, Attorney at Law, ChFC, CLU, she now offers estate planning, trust litigation, and financial advisory services. However, her dark history raises concerns about the reliability and trustworthiness of her new venture.
Background: TLC Investments & Trade Co.
Before transitioning into law, Shari Mattingly Bevan was heavily involved in the financial world through her company, TLC Investments & Trade Co. Over the years, the company operated under various names, including TLC Real Properties RLLP-1, TLC Brokerage Inc., TLC America Inc., and TLC Development Inc. These entities were at the heart of a massive securities fraud scheme that defrauded over 1,800 investors, many of whom were vulnerable senior citizens.
Between 1998 and 2000, Bevan’s company raised more than $150 million from investors by promising high returns—up to 15%—on safe, liquid investments. These investors were led to believe that they were buying into a secure, tax-deferred real estate opportunity. However, TLC was operating a Ponzi scheme, using new investor funds to pay returns to earlier investors.
A substantial portion of the funds—over $28 million—was misused for lavish personal expenses, including the purchase of racehorses, payments to other investors, and overseas wire transfers.
The U.S. Securities and Exchange Commission (SEC) brought a lawsuit against TLC and its executives, including Bevan, for securities fraud, highlighting the fraudulent nature of their operations. The SEC’s investigation revealed that TLC had violated numerous provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, including making false statements about the investments and failing to disclose material facts to investors. As a result, the court ordered the company to pay $106.6 million in disgorgement and imposed a permanent injunction on the company to prevent future violations.
The SEC and California Corporations Commissioner Action
The SEC’s case was only part of the legal action taken against Shari Mattingly Bevan and her companies. Following the SEC’s investigation, the California Corporations Commissioner took regulatory action, issuing a desist and refrain order against Bevan and TLC Investments for violating the California Corporate Securities Law.
The California Corporations Commissioner found that TLC had sold securities, including real estate investment agreements and promissory notes, without the proper licensing or compliance with state regulations.
Shari Mattingly Bevan had personally sold these securities, earning significant commissions—between 4.5% and 6%—on the funds she raised from investors. However, she never disclosed her earnings or the risks of the investments to the clients. Furthermore, she failed to inform investors about the SEC’s ongoing investigation into TLC’s operations.
The deceptive marketing tactics included promoting Tax Lien Certificates and Opportunity Properties as “safe” and “liquid” investments. In reality, TLC had no such profitable investments and had been using investor funds to cover up their losses, thus operating in the same manner as a Ponzi scheme. The company lost $15 million in the process, but investors were still assured that they would receive returns of 8% to 15% annually.
In total, Shari Mattingly Bevan personally sold over $1.3 million in fraudulent securities to 18 California residents, earning approximately $82,000 in commissions. As a result, the California Corporations Commissioner barred her from offering any securities or financial advisory services within the state.
Shari Mattingly Bevan’s Transformation into a Lawyer and Financial Planner
Despite her involvement in one of the largest financial fraud schemes of the time, Shari Mattingly Bevan attempted to reinvent herself by entering the legal field. She now operates the Law Offices of Shari Mattingly Bevan, based in Santa Ana, California.
In addition to her legal practice, Bevan claims to hold credentials as a Chartered Financial Consultant (ChFC) and Chartered Life Underwriter (CLU), positions that signify expertise in financial planning and wealth management.
Her new venture includes services in estate planning, estate and trust litigation, and administration. She also promotes herself as a financial planner with extensive experience in retirement planning, financial advisory services, and long-term financial strategies.
However, given her criminal past, many are skeptical of her ability to ethically provide financial services. Her previous involvement in fraudulent financial practices raises questions about her commitment to honesty and transparency in her current work. Despite her legal qualifications, many potential clients are rightfully concerned about trusting her with their financial matters.
A History of Deception: Why You Should Be Cautious
Shari Mattingly Bevan’s past as a convicted fraudster cannot be overlooked, regardless of her current legal credentials. After being involved in a Ponzi scheme that targeted vulnerable senior citizens and defrauded them of millions, it is hard to ignore the potential risks associated with hiring her as a financial planner or attorney.
Her actions not only defrauded individuals but also resulted in her being barred from offering financial advisory services in California, signaling her untrustworthiness in financial matters. Bevan’s previous misconduct included selling illegal securities, making false promises to investors, and concealing important facts that could have helped investors make informed decisions.
Even after the legal action against her, there is little evidence to suggest that Bevan has undergone any meaningful change or rehabilitation in her professional conduct. Her transformation from a financial fraudster to a lawyer and financial planner seems more like an attempt to escape her past than a genuine career shift. Therefore, potential clients should be extremely cautious before entrusting her with their legal or financial affairs.
Lessons to Learn from Shari Mattingly Bevan’s Story
The story of Shari Mattingly Bevan serves as a lesson about the importance of transparency and ethics in financial dealings. It highlights the risks of investing in unregulated schemes and the dangers of trusting individuals with shady pasts.
- Research Thoroughly: Before engaging with a financial planner, lawyer, or any professional in the financial industry, it is crucial to conduct thorough research. Check their credentials, look into their past actions, and ensure they are licensed to practice in your state.
- Recognize Red Flags: Promises of guaranteed returns, especially high returns like those Bevan’s companies offered, are often red flags of potential scams. Be cautious of anyone promoting “too good to be true” investment opportunities.
- Trust But Verify: Even if someone holds a legal or financial designation, it is important to verify their qualifications and ensure they have no history of fraudulent behavior. A criminal past in the financial industry should not be ignored, especially when the individual’s previous actions have resulted in significant legal consequences.
- Stay Informed About Your Investments: Make sure you are fully aware of the risks associated with any financial investment. Be skeptical of any claims made without clear, verifiable evidence to back them up.
Conclusion: Shari Mattingly Bevan Is Untrustworthy
While Shari Mattingly Bevan may now be a licensed attorney and financial planner, her criminal past cannot be overlooked. She was involved in running a $100 million Ponzi scheme that targeted vulnerable senior citizens, and her actions led to significant legal and financial consequences.
Though she has tried to reinvent herself, the fact remains that Bevan’s past behavior raises major concerns about her current professional integrity. She made over $82,000 from scamming investors, and was barred from offering any securities or financial advisory services in California due to her fraudulent actions.
Potential clients should exercise extreme caution when considering her services. While she may have the legal qualifications, her history of deception and financial fraud makes it difficult to trust her with your finances. Always verify the credentials of those in the financial services industry and be aware of the risks associated with entrusting your financial well-being to individuals with a questionable past.
