Houston businessman arrested in $32M securities fraud case

MarketsAssociated Press

Federal prosecutors say a Houston businessman has been indicted in a $32 million investment scheme linked to a software development company he founded.

Officials say 62-year-old Ray Charles Davis was arrested Thursday. Davis was indicted Dec. 7 on one count of securities fraud and 20 counts of wire fraud.

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The indictment says Davis made false statements to investors regarding the financial condition of Behavioral Recognition Systems Inc. Authorities estimate investors were defrauded out of $32 million.

Prosecutors say Davis also embezzled $11 million from the company.

Davis, if convicted on all counts, faces a maximum 420 years in prison.

His defense attorney, Dick DeGuerin of Houston, said his client is not guilty and the charges are greatly exaggerated.