Revolutions Medical Corp. (copy) (copy) (copy) (copy)

File

COLUMBIA — A South Carolina man has been sentenced to nearly four years in federal prison for scamming his investment clients out of hundreds of thousands of dollars, federal prosecutors said Tuesday.

Calvert J. Drummond Jr. of Greenville also must pay $742,000 in restitution in addition to the 46-month sentence, U.S. Attorney Sherri Lydon said in a news release.

Drummond, 35, pleaded guilty last year to conspiracy to commit wire fraud. Authorities said he promised clients he would secure bank guarantees worth millions for their projects if they paid him several hundred thousand dollars up front. To gain their trust, he told them he'd been a banker. He also used a pseudonym "to run the scam as his own name was closely associated with fraud," prosecutors said in court documents.

According to Greenville County court records, Drummond had received a five-year suspended sentence in 2010 after pleading guilty to breach of trust.

After his federal indictment last year, state Attorney General Alan Wilson issued a cease and desist order to Drummond, who prosecutors said had never been a registered securities broker.

The order provides more details about Drummond's alleged schemes, including his dealings with an investor in California. According to state prosecutors, Drummond told that client he needed $250,000 to secure $10 million, $2 million of which would be available in under two months.

Sign up for our new business newsletter

We're starting a weekly newsletter about the business stories that are shaping Charleston and South Carolina. Get ahead with us - it's free.


Instead of making good on his promises to investors, investigators said Drummond — who had no means to obtain the financing that he promised — spent his clients' money on travel and jewelry. With the $250,000 from the California investor, Drummond bought himself $12,000 in clothes, jewelry and leather goods and used more than $57,500 to pay back other debts, they said.

When his clients started asking when they would see returns on their investment, or sought repayment of the fees, FBI investigators said Drummond created fraudulent financial documents to show clients, and blamed subsequent repayment delays on various banks.