{"id":12208,"date":"2015-05-21T18:03:04","date_gmt":"2015-05-22T01:03:04","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=12208"},"modified":"2015-05-21T18:03:04","modified_gmt":"2015-05-22T01:03:04","slug":"fraud-scheme-to-raise-money-for-child-obesity-products-lands-man-in-prison","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=12208","title":{"rendered":"Fraud Scheme to Raise Money for Child Obesity Products Lands Man in Prison"},"content":{"rendered":"<p><strong>SANTA ANA, CALIF.<\/strong><\/p>\n<hr \/>\n<p><a href=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-thumbnail wp-image-1073\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/02\/criminal_justice_jurisprudence-2-150x150.jpg\" alt=\"criminal_justice_jurisprudence (2)\" width=\"150\" height=\"150\" \/><\/a>An Irvine man raised well over $3 million from victims who thought they were investing in products that would treat childhood obesity and Type II diabetes.<\/p>\n<p>Thursday,\u00a0<strong>U.S. \u00a0District Judge Andrew Guilford<\/strong> sentenced to\u00a0<span style=\"line-height: 1.5;\"><strong>Charles M. \u201cChuck\u201d Davis<\/strong>, 57, to 12 years and seven months in prison.<\/span><\/p>\n<p>The judge ordered Davis to pay $3.4 million as restitution to 66 victims, officials said.<\/p>\n<p>After \u00a0a seven-day trial last June, a federal jury found Davis guilty of two counts of mail fraud, seven counts of wire fraud and four counts of money laundering.<\/p>\n<p>According to court evidence, Davis ran\u00a0an investment scam involving the Newport Beach-based <strong>LifeRight Holdings, Inc.<\/strong><\/p>\n<p>Officials said Davis promised that\u00a0LifeRight was going to develop and use infomercials to market a product to combat child obesity. Davis promised investors a 15 percent return in only 13 months, as well as royalties on products sold and an option to convert the investment into shares of LifeRight stock when the company began selling product, authorities stated.<\/p>\n<p>Davis took in about $2.5 million from 45 investors, who lost all of their money.<\/p>\n<p>The second scheme involved a company called DT2, which purportedly offered a product to treat Type II diabetes.<\/p>\n<p>From 2009 until Davis was jailed in 2011, Davis raised approximately $900,000 from about 21 DT2 investors.<\/p>\n<p>Similar to the LifeRight scam, Davis diverted the investor funds to other companies and, instead of spending the money on DT2 business, Davis used the money to pay for high-end restaurants, expenses sustained by several girlfriends, spa treatments, cash withdrawals, and his civil and criminal defense attorneys.<\/p>\n<p>The victims in the DT2 also lost all of their money.<\/p>\n<p>In both schemes, Davis never had a real product.<\/p>\n<p>Davis has been in custody since September 2011, when his bond in this case was revoked after a judge found he was improperly soliciting money in the DT2 scheme, according to officials.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SANTA ANA, CALIF. An Irvine man raised well over $3 million from victims who thought they were investing in products that would treat childhood obesity and Type II diabetes. Thursday,\u00a0U.S. \u00a0District Judge&#8230;<\/p>\n","protected":false},"author":1,"featured_media":7271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[1387],"class_list":["post-12208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-child-obesity"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fraud Scheme to Raise Money for Child Obesity Products Lands Man in Prison<\/title>\n<meta name=\"description\" content=\"Fraud scheme to raise money for child obesity products lands man in prison for 12 years\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cjnotebook.com\/?p=12208\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fraud Scheme to Raise Money for Child Obesity Products Lands Man in Prison\" \/>\n<meta property=\"og:description\" content=\"Fraud scheme to raise money for child obesity products lands man in prison for 12 years\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cjnotebook.com\/?p=12208\" \/>\n<meta property=\"og:site_name\" content=\"American Justice Notebook\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AmericanJusticeNotebook\" \/>\n<meta property=\"article:published_time\" content=\"2015-05-22T01:03:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/Fraud-Image.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"353\" \/>\n\t<meta property=\"og:image:height\" content=\"234\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Raul\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Raul\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=12208#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=12208\"},\"author\":{\"name\":\"Raul\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#\\\/schema\\\/person\\\/f5521baddca77b521f012298775186c0\"},\"headline\":\"Fraud Scheme to Raise Money for Child Obesity Products Lands Man in Prison\",\"datePublished\":\"2015-05-22T01:03:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=12208\"},\"wordCount\":318,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=12208#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2014\\\/11\\\/Fraud-Image.jpg\",\"keywords\":[\"child obesity\"],\"articleSection\":[\"Home Main Slider\",\"U.S. Department of Justice\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/cjnotebook.com\\\/?p=12208#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=12208\",\"url\":\"https:\\\/\\\/cjnotebook.com\\\/?p=12208\",\"name\":\"Fraud Scheme to Raise Money for Child Obesity Products Lands Man in Prison\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=12208#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=12208#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2014\\\/11\\\/Fraud-Image.jpg\",\"datePublished\":\"2015-05-22T01:03:04+00:00\",\"description\":\"Fraud scheme to raise money for child obesity products lands man in prison for 12 years\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/cjnotebook.com\\\/?p=12208\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/?p=12208#primaryimage\",\"url\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2014\\\/11\\\/Fraud-Image.jpg\",\"contentUrl\":\"https:\\\/\\\/cjnotebook.com\\\/wp-content\\\/uploads\\\/2014\\\/11\\\/Fraud-Image.jpg\",\"width\":353,\"height\":234,\"caption\":\"FBI Photo Image\"},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/cjnotebook.com\\\/#website\",\"url\":\"https:\\\/\\\/cjnotebook.com\\\/\",\"name\":\"American Justice Notebook\",\"description\":\"&quot;Our liberty depends on the freedom of the press, and that cannot be limited without being lost.&quot; 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