RICHMOND, Va. — The partner of a former U.Va. and NFL football player facing civil and criminal charges for defrauding dozens of investors pleaded guilty on Friday for his role in the alleged scheme, according to the U.S. Attorney’s Office.
Sherman C. Vaughn Jr., a resident of Blackstone, who with Merrill Robertson Jr. led Midlothian-based firms Cavalier Union Investments and Black Bull Wealth Management, now faces up to 20 years in federal prison after entering a plea agreement on criminal charges of conspiracy to commit mail fraud and an unlawful monetary transaction.
The U.S. Attorney’s Offices states that between 2009 and 2016, Vaughn, 45, took part in an alleged scheme with his partner Merrill Robertson Jr. that caused more than 50 investors to lose a total of $9 million.
The case claims Robertson and Vaughn falsely led clients to believe they were experienced investment advisers and promised specific rates of return and bogus account statements.
“Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate,” the U.S. Attorney’s Office said in a statement. “In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.”