An Irvine man has been charged with running an investment scam involving
approximately $2.4 million. Charles “Chuck” Davis, 53, was
arraigned in U.S. District Court on Monday, December 27, 2010, after surrendering
to the FBI.
According to the U.S. District Attorney’s Office, Mr. Davis has been
charged with two counts of mail fraud, five counts of wire fraud and three
counts of money laundering. Mr. Davis pleaded not guilty on all counts.
According to the indictment, Mr. Davis operated the investment scam through
Newport Beach-based LifeRight Holdings Inc. The unsuspecting investors
were under the impression that their money was being used to develop and
market a product to combat childhood obesity.
Investors were allegedly told by Mr. Davis that they would receive 15 percent
interest on their investments over a 13- month period of time. They were
also under the impression that they would receive royalties on products
sold, as well as an option to convert their investments into shares once
The indictment alleges that Mr. Davis used the money for his own personal
use, which included payments to himself, family members and girlfriends.
He has also been accused of using the money to pay his rent and purchase
clothes and jewelry, among other things.
Mr. Davis faces up to 170 years in prison. His trial has been set for February 22, 2011.