Nearly 30 Years of Fake Bonds: How a Danville Adviser Ran a Ponzi Scheme—and Was Sentenced to Nine Years

Published Oct. 1, 2026. Case statuses are current as of that date.

On Sept. 16, 2026, U.S. District Judge Jon S. Tigar sentenced Edwin Emmett Lickiss Jr., 78, of Danville, California, to nine years in federal prison after he pleaded guilty to one count of wire fraud and one count of money laundering in a decades-long Ponzi scheme [1]. Lickiss admitted defrauding at least 93 victims of more than $9.5 million from 1998 through September 2024 by selling nonexistent “tax-free” bonds [1].

Because Lickiss pleaded guilty and has been sentenced, the criminal case against him is a conviction, not a pending accusation.

How the scheme worked

1. The trusted adviser pitch. Lickiss presented himself as a financial adviser offering exclusive, tax-free bonds with returns of up to 30% [1].
2. Social proof. He claimed family members had invested, that he charged no fees because he had already profited so much, and that investors could redeem money at any time [1].
3. The bonds did not exist. Instead of investing in bonds, he used later investors’ money to pay earlier ones—classic Ponzi mechanics—and spent victim funds on personal expenses including cash withdrawals, home renovations, travel, and payments on vehicles, mortgages, and credit cards [1].
4. Ignored a FINRA bar. FINRA barred Lickiss from broker-related business from Aug. 18, 2014, through Dec. 17, 2014; he continued to solicit investments during that period [1].

A parallel SEC civil case charged that between 1998 and August 2024 he fraudulently offered about $12.7 million in promissory notes purporting to pay 9% to 32% interest, falsely claiming access to limited high-yield government bonds [2]. Local reporting on the Sept. 16 sentencing said the judge described a “trail of destruction,” that Lickiss must report to prison by Oct. 30, 2026, and that he apologized in court, saying he was “terribly, terribly, horribly sorry and totally at fault” [3].

Who was convicted

Edwin Emmett Lickiss Jr. of Danville pleaded guilty to wire fraud and money laundering. The case was investigated by IRS Criminal Investigation and the FBI and prosecuted by the U.S. Attorney’s Office for the Northern District of California [1]. The SEC’s earlier civil complaint was filed in the same district [2].

Red flags

• Promised high, “tax-free,” exclusive returns available only through one person.
• Claims of no fees because the seller “already made enough.”
• Pressure to keep the deal quiet or to recruit friends from church, sports, or family circles.
• An adviser who was barred or suspended by FINRA—check BrokerCheck.
• Difficulty getting independent confirmations of the underlying bonds or notes.

What to do if you're targeted

1. Verify registration of anyone selling securities on Investor.gov and FINRA BrokerCheck.
2. Get written offering documents and have an independent adviser or attorney review them.
3. Be skeptical of returns that far exceed ordinary bond yields with “no risk.”
4. Report suspected investment fraud to the SEC, FINRA, and the FBI at ic3.gov.
5. If you already invested, gather statements and contact a securities attorney or your state securities regulator.

Case status (as of Oct. 1, 2026)

Defendant	Court	Status as of Oct. 1, 2026	Source
Edwin Emmett Lickiss Jr., 78, Danville, CA	Federal, N.D. Cal.	Pleaded guilty; sentenced Sept. 16, 2026, to 9 years; report date Oct. 30, 2026	[1], [3]
Parallel SEC civil action	N.D. Cal.	Civil enforcement filed (2025)	[2]

Statuses can change.

Sources

1. IRS Criminal Investigation / U.S. Attorney’s Office announcement republished, “Former East Bay financial advisor sentenced to nine years in federal prison for Ponzi scheme that defrauded at least 93 victims,” Sept. 16, 2026. https://www.irs.gov/compliance/criminal-investigation/former-east-bay-financial-advisor-sentenced-to-nine-years-in-federal-prison-for-ponzi-scheme-that-defrauded-at-least-93-victims
2. U.S. Securities and Exchange Commission, Litigation Release No. 26360, “SEC Charges California Man with Operating a $12.7 Million Ponzi Scheme” (Edwin Emmett Lickiss, Jr.). https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26360
3. Dan Noyes, “78-year-old Danville financial adviser sentenced to 9 years in prison for $12 million Ponzi scheme,” ABC7 San Francisco, Sept. 17, 2026. https://abc7news.com/post/danville-financial-advisor-edwin-lickiss-gets-9-year-prison-sentence-12-million-ponzi-scheme/19841605/

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