United States Attorney’s Office

Western District of Louisiana

For Immediate Release www.justice.gov/usao/law

July 23, 2019 Follow us on Twitter @USAO_WDLA

David C. Joseph
United States Attorney
(337) 262-6618
Henri.LeJeune@usdoj.gov
Mona.Hardwick@usdoj.gov

SHREVEPORT INVESTMENT ADVISOR PLEADS GUILTY

TO BILKING CLIENTS OUT OF $3.5 MILLION

SHREVEPORT, La. – United States Attorney David C. Joseph announced today

that Gregory Alan Smith, 55, a Shreveport investment advisor, pleaded guilty before
Chief U.S. District Judge S. Maurice Hicks Jr. to conspiracy to commit wire fraud.

According to information presented in court, Smith used his influence and status
as an investment advisor to persuade multiple victims to “invest” approximately $3.5
million with Smith and co-defendant Kirbyjon H. Caldwell. The victims’ investments
were purportedly in historical Chinese bonds, which are bonds issued by the former
Republic of China prior to losing power to the communist government in 1949. These
bonds are not recognized by China’s current government and, accordingly, have no
investment value.

Smith began approaching existing clients and acquaintances in the spring of 2013
about what he described as an opportunity to invest in Chinese historical bonds. His
usual sales pitch to investors was that Caldwell, the senior pastor at Windsor Village
United Methodist Church in Houston, Texas, was: (1) putting the bond deal together on
behalf of investors, (2) had the bonds in his possession or was obtaining them and (3) was
brokering a deal to sell the bonds. Smith also promised that by investing money with
him and Caldwell, the victims would obtain a partial ownership of the bonds and would
quickly receive exponential returns on their investments. The victims were not told of
the true nature of the bonds nor were they informed that no previous investor had ever
obtained the promised return on investment. The victims were encouraged to cash out
any other investments they might have if they could not otherwise afford to participate.
 After Smith made the fraudulent pitch, the victims were instructed to wire funds
to various bank accounts under Caldwell’s control. The funds were then divided
between Smith, Caldwell and others. Smith received $1.08 million of the total $3.5
million. He used it to pay down loans, purchase two luxury sport utility vehicles, place
a down payment on a vacation property and maintain his lifestyle. After time passed
and investors began to question why they had not received the promised returns, Smith
and Caldwell offered excuses, defended the legitimacy of the deals and assured victim-
investors that they would receive the promised returns.

Under the terms of his plea agreement, Smith faces five to seven years in prison.
He also faces a $1 million fine, restitution, forfeiture and five years of supervised release.
Smith’s sentencing is scheduled for December 11, 2019. Caldwell’s trial is scheduled
for December 2, 2019.

The FBI conducted the investigation. Assistant U.S. Attorneys Seth D. Reeg and
C. Mignonne Griffing are prosecuting the case.

U.S. Attorney Joseph noted that this case was included in the Justice Department’s
largest-ever nationwide elder fraud sweep, which includes hundreds of enforcement
actions in criminal and civil cases that targeted or disproportionately affected seniors. A
list of Elder Fraud cases by the Department of Justice is provided on this interactive map.

For more information about DOJ’s efforts to prevent and combat elder abuse,
please visit the Elder Justice website at https://www.justice.gov/elderjustice. Elder fraud
complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-
HELP. The Department of Justice provides a variety of resources relating to elder fraud
victimization through its Office of Victims of Crime, which can be reached at
www.ovc.gov.

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