ORLANDO, Florida — A Naples 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.
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.