A Naples, Florida man is pleading guilty to running an investment fraud scheme in which more than 100 investors lost over $11 million.
Blayne Davis pleaded guilty last week to a charge of conspiracy to commit mail and wire fraud. He will be sentenced in October and faces a maximum sentence of 20 years in prison. He also will be required to pay $11.8 million in restitution to his investors.
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Davis is agreeing to cooperate in the ongoing investigation.
Davis was director of trading for Capital Blu Management, which offered investment services to investors.
Prosecutors say a fund Davis formed with two other co-defendants sustained significant trading losses in 2008 but the defendants misrepresented the fund's performance to investors.
Prosecutors say the men also diverted money to pay their personal expenses.