A Maryland company executive has pleaded guilty to a running a multi-year investment fraud scheme, according to the state’s Attorney General Anthony G. Brown.
In a press release, Brown announced that Daniel Angcao Canubas, the founder and CEO of Formicidae, LLC, entered the plea in Montgomery County to one count of felony theft scheme greater than $100,000 for defrauding investors, one count of felony theft scheme $25,000-$100,000 for defrauding Formicidae employees and independent contractors, and one count of violation of a securities order.
Prosecutors determined that during a span from February 2021 through September 2023, Canubas engaged in a pattern of fraud that targeted investors, employees, and contractors.
The charges state that while soliciting funds, he lied to investors and promised guaranteed returns, inflated revenue projections, and nonexistent business pipelines. Financial records showed that these claims were false. It was also alleged that Canubas routinely ignored repayment requests from his clients. In total, Canubas was accused of stealing approximately $294,250 from ten investors.
“Investment fraud is not just about stolen money: it is betrayal of Marylanders who trusted someone enough to hand over their saviings,” said Brown. “This guilty plea is a victory for the ten investors and three workers who were defrauded, and a reminder that our Office will hold accountable those who break the law for their own financial gain.”
Brown added that Canubas failed to pay his employees and contractors what he owed them, issuing inconsistent payments through various apps and bouncing checks while withdrawing money for personal use. In total, he failed to pay a total of $37,271 to three people who worked for him.
The investigation also found that Canubas sold securities after being ordered to stop by the Maryland Securities Commissioner. The ban was issued in June 2022 by the Maryland Securities Commissioner who cited unregistered sales, failure to disclose risk, and using investor funds for personal lifestyle. Despite the ban, Canbus continued selling securities to at least four additional investors, including an elderly client.
“The Securities Division has ongoing concerns when Marylanders are being defrauded, at times criminally, by violators of the securities laws,” said Maryland Securities Commissioner Melanie Lubin. “We will continue to work with criminal authorities to bring to justice bad actors who victimize Maryland investors.”
Sentencing is scheduled for December 17, 2026. At sentencing, Canubas will be ordered to pay restitution to the victims.
The attorneys at Hyman Cotter have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter at (833) 665-0784 or through our online contact form for a no-cost evaluation of your matter.
