FROM STAFF REPORTS

A former Alabaster attorney is facing 21 charges related to an alleged securities fraud scheme after he was indicted on the charges on Oct. 3.

A federal grand jury on Oct. 3 indicted 34-year-old Alabaster resident Christopher Shawn Linton with the securities fraud scheme and with bank fraud stemming from the alleged submission of a fraudulent commercial loan application to Iberia Bank for a loan of $908,650.

U.S. Attorney Joyce White Vance’s office gave the following account of the alleged crimes:

“In 2007, Linton became an officer, partner and part owner of a business known as Integrity Capital Inc., by purchasing stock in the company. Integrity Capital Inc. was a factoring business located in the greater Birmingham area. Its business was to make advance payments to lawyers who had submitted payment vouchers for work performed for the state of Alabama. Integrity Capital would then receive the voucher payments from the state and keep a percentage as a fee.

“In 2009, Linton formed Integrity Capital LLC. Beginning about August 2009, Linton recruited investment advisors to solicit investments in Integrity Capital LLC in order to purchase the assets and capital stock of Integrity Capital Inc. Between September 2009 and December 2011, a total of 12 individuals invested more than $2.8 million in Integrity Capital LLC. The investors mailed, wired or delivered money to Linton and the funds were deposited into one of several bank accounts held by the law firm where Linton worked as an attorney. After receiving the investor funds, Linton fraudulently converted them for personal use by writing personal checks to himself and by using the funds for non-investment purposes. The non-investment purposes included the purchase of his personal residence, construction projects at the residence, private jet flights, vacations, recreational vehicles, furniture, luxury items, Auburn football tickets and a donation to the Heisman Trophy Trust.”

If convicted of the crimes, Linton could face between five-30 years in prison per charge, and could face between $250,000-$1 million per charge.