Savannah Man Convicted on 7 Counts of Securities Fraud
Sentenced to 28 Years in Prison For Bilking Investors

ATLANTA …Secretary of State Cathy Cox today announced the conviction of a Georgia man on trial for securities fraud for selling fraudulent restaurant investments to 6 Savannah-area investors.

 Reginald “Bubba” Haupt, 67, of Savannah, was convicted Friday in Chatham County Superior Court on seven counts of securities fraud for making false statements and omitting material facts during the sale of investments in a new restaurant chain.

During the trial, investors testified that Haupt sold them investments in Crab Daddy’s restaurants on Tybee Island and in Richmond Hill, GA in 2002. Haupt told the investors they could expect $400 per month in returns for each restaurant they opened with investors buying more than $65,000 in shares of stock in the new restaurants. Investors testified that Haupt refused to sign contracts and began giving away shares of stock in the company to people who did not invest. When asked for financial documents by investors, Haupt could not produce any and closed the businesses without returning any of the investors’ money. None of the investment offerings were registered with the Secretary of State’s Securities Division pursuant to the Georgia Securities Act of 1973. 

“I applaud our investigators and Chatham County Assistant District Attorney Arvo Henifin for their efforts in securing a conviction in this complicated case,” said Secretary of State Cathy Cox.

Judge James F. Bass Jr. sentenced Haupt to 28 years in prison, four years for each count on which he was convicted.