SoCal Scammer Facing 240 Years
6/23/2014 4:39:00 AM,
SANTA ANA, Calif. (CN) - An Orange County man faces more than 200 years in prison for defrauding people of $3.3 million by claiming he would use the money for diabetes and childhood obesity research.
Charles "Chuck" Davis, 57, of Irvine, was convicted Friday of two counts of mail fraud, seven counts of wire fraud and four counts of money laundering, the U.S. Attorney's Office said.
Davis ran two scams, prosecutors said, one through Newport Beach-based LifeRight Holdings, which he claimed was developing a product to fight child obesity. He promised 15 percent return in 13 month, royalties, and the chance to turn the invested money into shares. But he spent the $2.4 million he raised on himself and to defend himself from other lawsuits, prosecutors said.
His second scheme involved a company called DT2, which he claimed had a product to treat type II diabetes. He raised more than $900,000 on this one, and spent it on himself and his girlfriends, prosecutors said in the statement.
He faces up to 240 years in federal prison for the 13 felony counts when he is sentenced on Oct. 20.
Davis has been in jail since September 2011.