FOR IMMEDIATE RELEASE
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BALTIMORE, MD – Attorney General Anthony G. Brown announced today that Daniel Angcao Canubas, the founder and CEO of Formicidae, LLC, pleaded guilty before the Honorable Christopher Fogleman of the Circuit Court for 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.
From February 2021 through September 2023, Canubas engaged in a pattern of fraud that targeted investors, employees, and contractors. 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. Canubas also routinely ignored repayment requests from his clients. In total, Canubas stole 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 savings,” said Attorney General 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.”
“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.”
Additionally, 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.
Additionally, he sold securities after being ordered to stop by the Maryland Securities Commissioner. On June 23, 2022, the Maryland Securities Commissioner banned Canubas from selling securities, citing unregistered sales, failure to disclose risk, and using investor funds for personal lifestyle. Despite the ban, he continued selling securities to at least four additional investors – including an elderly client – just days after receiving the ban.
Sentencing is scheduled for December 17, 2026, before Judge Fogleman in the Circuit Court for Montgomery County. At sentencing, Canubas will be ordered to pay restitution to the victims.
In making today’s announcement, Attorney General Brown thanked his Criminal Division and Securities Division, specifically Criminal Division Chief Katie Dorian, Fraud and Corruption Unit Chief Alexander Huggins, Assistant Attorney General Katharine Weiskittel, Investigative Auditor Harry Armstrong, and Deputy Fraud and Corruption Unit Chief Gregory Jennings, who prosecuted this case. Finally, Attorney General Brown thanked State’s Attorney for Montgomery County John McCarthy for his assistance with this prosecution.
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