{"id":4077,"date":"2014-06-20T19:22:53","date_gmt":"2014-06-21T02:22:53","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=4077"},"modified":"2014-06-20T19:22:53","modified_gmt":"2014-06-21T02:22:53","slug":"man-convicted-scams-promised-treat-aliments","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=4077","title":{"rendered":"Man Convicted of Scams To Treat Aliments Could Get Up to 240 Years in Prison"},"content":{"rendered":"

\"LADYJUSTICE\"<\/a>SANTA ANA, CALIFORNIA <\/strong>\u2013 An Irvine man was found guilty of running a fraud scheme that raised about $3.3 million from victims who thought they were investing in products that would treat childhood obesity and Type II diabetes, officials said.<\/p>\n

Authorities said Charles \u201cChuck\u201d Davis, 57, was found guilty today of two counts of mail fraud, seven counts of wire fraud and four counts of money laundering<\/p>\n

As a result of being convicted of the 13 felony counts, Davis faces up to 240 years in federal prison when he is sentenced \u00a0on Oct. 20, according to authorities.<\/p>\n

The evidence presented during a seven-day trial showed that Davis operated an investment scam involving the Newport Beach-based LifeRight Holdings, Inc.<\/p>\n

According to promises made by Davis, LifeRight was going to develop and use infomercials to market a product to combat child obesity.<\/p>\n

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. \u00a0 But investor funds \u2013 more than $2.4 million raised from about 40 victims in 2007 and 2008 \u2013 were actually used to fund Davis\u2019 personal expenses and legal fees in lawsuits brought against him, officials said.<\/p>\n

The second scheme involved a company called DT2, which purportedly offered a product to treat Type II diabetes.<\/p>\n

From 2009 to 2011, officials said Davis raised more than $900,000 from about 25 DT2 investors, according to authorities.<\/p>\n

Similar to the LifeRight scam, \u00a0officials said 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

Davis has been in custody since September 2011.<\/p>\n","protected":false},"excerpt":{"rendered":"

SANTA ANA, CALIFORNIA \u2013 An Irvine man was found guilty of running a fraud scheme that raised about $3.3 million from victims who thought they were investing in products that would treat…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[594,593],"class_list":["post-4077","post","type-post","status-publish","format-standard","hentry","category-u-s-department-of-justice","tag-charles-davis","tag-fraud-scheme"],"yoast_head":"\nMan Convicted of Running Scams to Treat Ailments<\/title>\n<meta name=\"description\" content=\"SANTA ANA, CALIFORNIA \u2013 An Irvine man was found guilty of running a fraud scheme that raised about $3.3 million from victims who thought they were\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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