The owner of a Rhode Island investment firm has agreed to plead guilty to federal charges stemming from an alleged $4 million investment fraud that prosecutors say financed a luxury lifestyle instead of the real estate loans investors were promised.
According to court filings in the U.S. District Court for the District of Rhode Island, Christopher Aubin, the owner of Anchor State Capital, Anchor State Investments and Anchor State Properties, has reached a plea agreement with federal prosecutors. Under the agreement, Aubin will forfeit nearly $4 million in assets, along with a Chevrolet Silverado pickup truck and seven Louis Vuitton handbags. Prosecutors have also agreed to recommend a prison sentence of between 21 and 51 months.
The plea follows parallel civil and criminal actions brought by U.S. authorities after regulators alleged Aubin operated what the Securities and Exchange Commission described as a scheme bearing “many hallmarks of a Ponzi scheme.”
Investors Were Promised High Returns From Real Estate Lending
According to the SEC’s complaint, Aubin solicited investors by claiming their money would fund short-term loans for real estate and property development projects.
Investors were allegedly promised returns ranging from 12% to 19% over periods of only a few months, with the investments presented as being backed by real estate lending activity.
Federal authorities contend those representations were false.
Instead of originating the volume of real estate loans described to investors, prosecutors allege Aubin made very few legitimate loans and largely used incoming investor funds to repay earlier investors while financing personal and business expenses.
Luxury Spending Allegedly Funded With Investor Money
The criminal indictment and SEC complaint describe extensive personal spending allegedly financed with investor funds.
According to prosecutors, Aubin used client money to pay for lavish restaurant meals, luxury holidays and expensive vehicles for himself and his girlfriend.
The SEC also alleged Aubin spent nearly $67,000 from company accounts to purchase a BMW that was given to his girlfriend. Investigators further claim Anchor State funds paid for multiple luxury trips, including travel on private jets during 2023 and 2024.
Authorities argue those expenditures formed part of a broader pattern in which investor money was diverted away from its stated investment purpose to finance Aubin’s personal lifestyle.
Plea Agreement Includes Nearly $4 Million in Forfeitures
As part of the proposed plea agreement, Aubin has agreed to forfeit assets with a value approaching $4 million.
The forfeiture package also includes a Chevrolet Silverado pickup truck and seven Louis Vuitton handbags identified by prosecutors as assets connected to the alleged fraud.
Asset forfeiture is designed to strip defendants of property obtained through or used in criminal activity and can ultimately provide a source of compensation for victims, although the amount ultimately recovered by investors depends on separate restitution proceedings and the value of recoverable assets.
SEC Previously Alleged Ponzi-Like Operation
The Securities and Exchange Commission filed a civil enforcement action against Aubin in May 2025, alleging that the operation exhibited many characteristics commonly associated with Ponzi schemes.
According to the regulator, investor funds were not primarily used to generate returns through legitimate lending activity but were instead recycled to make payments to earlier investors while covering operating costs and personal expenditures.
That pattern is a defining feature of Ponzi schemes, where the appearance of successful investments is maintained through new investor contributions rather than genuine investment profits.
Sentencing Recommendation Still Subject to Court Approval
Under the plea agreement, federal prosecutors will recommend a prison sentence ranging from 21 to 51 months.
The recommendation is not binding on the court, and the sentencing judge will determine the final penalty after considering the advisory federal sentencing guidelines and other statutory factors.
The case serves as another reminder of the risks associated with investment opportunities promising unusually high returns over short periods. Regulators continue to warn that guaranteed or consistently high returns, particularly where investment strategies lack transparency, remain among the most common warning signs of investment fraud.
