A Copley man pleaded guilty to a 14-count criminal information for operating a fraudulent investment scheme which caused investors to lose $1.8 million
A Copley man pleaded guilty to a 14-count criminal information for operating a fraudulent investment scheme which caused investors to lose approximately $1.8 million, said U.S. Attorney Steven M. Dettelbach.
Anthony Davian, 34, pleaded guilty to one count of securities fraud, two counts of mail fraud, four counts of wire fraud, and seven counts of money laundering. He is scheduled to be sentenced July 2.
The information charges that between July 2008 and July 2013, Davian used his hedge fund, Davian Capital Advisers, LLC, to promote and sell securities to at least 20 investors across several states, resulting in $1.8 million in overall investor loss.
Davian purported to sell securities in the form of shares in the various funds he created and controlled, including Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and others.
Instead, he used the investors' monies to redeem earlier investors, enrich himself and pay off personal expenses, such as the purchase of an Audi Q7 Prestige, according to the information.
The investigation revealed that Davian cajoled investors' into giving him hundreds of thousands of dollars by claiming to manage hundreds of millions of dollars to make himself appear more sophisticated than he really was and by falsifying client account statements, according to the information.
"This defendant deceived clients to line his own pockets," Dettelbach said. "We will continue to aggressively pursue cases in which investors are cheated out of their savings."
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Matthew Cronin and James Morford following an investigation by agents of the United States Secret Service, the Internal Revenue Service and the United States Postal Service.