ORLANDO, Fla. (AP) — A Naples man is going to spend nine years in prison for running an investment fraud scheme.
Federal prosecutors announced that Blayne Davis was sentenced Wednesday for his role in a scheme in which more than 100 investors lost over $11 million.
Davis pleaded guilty in July to a charge of conspiracy to commit mail and wire fraud. Davis is agreeing to cooperate in the ongoing investigation.
Davis also will be required to pay restitution to investors.
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.