Financial Advisor Darayl Davis Sentenced to 160 Months for $5.1 Million 'Guaranteed' Investment Fraud Targeting Church Members and Retirees

Case from 2018–2022 (U.S. Attorney's Office latest release: May 4, 2021; later developments are from court records and other sources cited below). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Financial advisor Darayl Davis told clients their money was guaranteed to grow. On May 3, 2021, he was sentenced to 160 months (more than 13 years) in federal prison for defrauding more than 25 victims out of more than $5.1 million, according to the U.S. Attorney's Office for the Northern District of Illinois [1]. Many of the victims were retirees who gave him all their savings. The Securities and Exchange Commission said he was ordered to pay more than $7.1 million in restitution [3].

Davis appealed. The U.S. Court of Appeals for the Seventh Circuit dismissed the appeal on March 29, 2022, holding that his plea agreement waived it [4] [5].

How the scheme worked

According to prosecutors [1] [2]:

1. Two firms. Davis sold through Washington, D.C.-based Financial Assurance Corp. and Los Angeles-based Affluent Advisory Group LLC.
2. "Guaranteed" returns. He promised fixed annual interest, at least 6% according to the 2018 superseding indictment, plus protection against losses. He claimed some products were backed by a well-known multinational life insurance company, which had no connection to them.
3. Retirement rollovers. The indictment said some victims were persuaded to "roll over" retirement savings into an account Davis controlled.
4. Lavish spending. The superseding indictment alleged about $706,000 in credit card payments, $476,500 in rent on a Los Angeles mansion (described at sentencing as eight bedrooms), $102,000 on airline tickets, $45,000 on car rentals, $42,500 on an exclusive club membership, $42,000 on luxury hotels and $25,000 on theater tickets.
5. Ponzi payments. He used some investors' money to pay others and keep the scheme going. It ran from at least 2003 to 2018.

"Davis targeted his victims personally, seeking out fellow church members, individuals who had previously purchased legitimate investment products from him, or 'friends' to whom he offered the 'favor' of an inside investment opportunity," prosecutors wrote in their sentencing memorandum [1]. The SEC alleged that Davis hosted seminars and used his religious affiliation to win investors' trust [3].

The person sentenced

Darayl Davis, 48 at sentencing, Chicago (formerly Bowie, Md.) [1]

• Charges: a 2018 superseding indictment charged money laundering, wire fraud, mail fraud and aggravated identity theft (No. 18-cr-25, N.D. Ill.) [2] [3].
• Plea: guilty to one count of mail fraud (2021).
• Sentence: 160 months in prison, imposed May 3, 2021, by U.S. District Judge Robert W. Gettleman [1]. Restitution was more than $7.1 million [3].
• Appeal: dismissed March 29, 2022 (7th Cir. No. 21-1854; reported at 29 F.4th 380) because of the appeal waiver in his plea agreement [4] [5].
• SEC civil case (No. 17-cv-9224, N.D. Ill.): default judgment on liability March 26, 2018, and Davis was held in contempt for violating an asset freeze [3]. Final judgments against Davis and relief defendant Affluent Advisory Group were entered Sept. 20, 2021 [6]. In its motion for those judgments, the SEC asked for $4,134,796 in disgorgement plus $1,172,110 in interest, with payment deemed satisfied by the criminal restitution order.

Red flags

• "Guaranteed" returns with "no risk to principal." Legitimate investments don't promise both.
• Name-dropping a big insurance company that you can't confirm with the company itself.
• Pressure to roll over a 401(k) or IRA into an account the advisor controls.
• Investment pitches made through your church or social circle, framed as a special favor.

What to do

1. Call the insurer directly at a number from its official website to confirm any product supposedly backed by it.
2. Check the advisor on brokercheck.finra.org and adviserinfo.sec.gov. Insurance-only agents can be checked with your state insurance department.
3. Report suspected fraud to the SEC at sec.gov/tcr and the FBI at ic3.gov.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Darayl Davis	N.D. Ill., 18-cr-25; 7th Cir. 21-1854	Pleaded guilty to mail fraud; sentenced May 3, 2021, to 160 months and $7.1M+ restitution; appeal dismissed March 29, 2022	[1], [3], [4], [5]
DaRayl D. Davis; Affluent Advisory Group, LLC	N.D. Ill., 17-cv-9224 (SEC)	Final judgments entered Sept. 20, 2021	[3], [6]

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Financial Advisor Sentenced to More Than 13 Years in Prison for Swindling Investors Out of $5.1 Million," May 4, 2021. https://www.justice.gov/usao-ndil/pr/financial-advisor-sentenced-more-13-years-prison-swindling-investors-out-51-million
2. U.S. Attorney's Office, Northern District of Illinois, "Financial Advisor Indicted on Fraud Charges for Allegedly Swindling Investors out of $4.7 Million," June 27, 2018. https://www.justice.gov/usao-ndil/pr/financial-advisor-indicted-fraud-charges-allegedly-swindling-investors-out-47-million
3. U.S. Securities and Exchange Commission, Litigation Release No. 25088, May 13, 2021. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25088
4. CourtListener, United States v. Davis, No. 1:18-cr-00025 (N.D. Ill.), docket (7th Cir. judgment and mandate, April 20, 2022). https://www.courtlistener.com/docket/47101913/united-states-v-davis/
5. United States v. Darayl Davis, 29 F.4th 380 (7th Cir. 2022), via Midpage. https://app.midpage.ai/document/united-states-v-darayl-davis-6327800
6. SEC v. Davis, No. 1:17-cv-09224 (N.D. Ill.), SEC motion for entry of final judgment (Aug. 12, 2021), via GovInfo; final judgment orders entered Sept. 20, 2021 (docket). https://www.govinfo.gov/content/pkg/USCOURTS-ilnd-1_17-cv-09224/pdf/USCOURTS-ilnd-1_17-cv-09224-0.pdf

---

Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, acquittal, or change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.