Image via WikipediaFrom the FBI here in Los Angeles!
SANTA ANA, CA—An Irvine man pleaded not guilty this afternoon after surrendering this morning to special agents with the FBI in an investment scheme case that allegedly involved losses totaling $2.4 million.
Charles “Chuck” Davis, 53, was taken into custody without incident this morning and was arraigned this afternoon in United States District Court. After pleading not guilty, Davis was released on a $160,000 bond and was ordered to stand trial on February 22.
Davis was named in a 10-count indictment returned last Wednesday by a federal grand jury. The indictment alleges that Davis operated an investment scam involving the Newport Beach-based LifeRight Holdings, Inc.
According to promises made by Davis, LifeRight was going to develop and use infomercials to market a product to combat child obesity.
Davis signed agreements with investors—Private Placement Memoranda (PPM)—that provided for 15 percent interest on the investment over a 13-month period. The PPMs also called for investors to receive royalties on products sold and an option to convert the investment into shares of LifeRight stock when the company began selling product.
The indictment alleges that investor funds were not used in the manner set forth in the PPMs. Instead, Davis used investor funds for personal expenses, including payments to himself, family members, and girlfriends; clothing, jewelry, and other consumer items; rent, utilities and credit card payments; and legal fees to lawyers representing Davis in lawsuits brought against him.
As a result of the scheme, the indictment alleges that Davis caused approximately 40 investors to lose more than $2.4 million.
In addition to LifeRight Holdings, Davis owned, controlled or was affiliated with LifeRight Holdings International, Inc.; LifeRight Worldwide, Inc.; American Membership Systems, Inc.; Solomon Davis Financial Group, Inc.; Forward Area, Inc.; Arcane Communications, Inc.; CJ Davis, Inc.; Arcane Communications; and Hawk Management Group.
The indictment accuses Davis of two counts of mail fraud, five counts of wire fraud and three counts of money laundering. If he is convicted of all 10 counts in the indictment, Davis would face a statutory maximum sentence of 170 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court. The case against Davis was investigated by the Federal Bureau of Investigation.
Media contact information for Randy Economy and Brian Hews and Los Cerritos Community Newspaper
Randy Economy and Brian Hews are "two of the best" Investigative Reporters in all of Southern California. They are responsible for uncovering the biggest 'political pay to pay scandal' in the HISTORY of Los Angeles County government, deep inside the Los Angeles County Assessor's Office. Randy and Brian's work has been featured on Fox News, NBC LA, CBS/KCAL, KTLK-AM 1150, The Mark Isler Show, The David Cruz Show, Univision Radio Network, KTLA News, Los Angeles Times, LA Daily News, KFI Talk Radio, KABC Talk Radio, KABC Eyewitness News and dozens of other media outlets across America. He is the On-Line Editor for Hews Media Group who publishes Los Cerritos Community Newspaper and the La Mirada Lamplighter. If you are interested in interviewing Randy and Brian for your news program, radio talk show, etc., drop an email to Randy@CerritosNews.net, or call 562 407-3873 during regular business hours. Thanks for all of your AMAZING SUPPORT and INTEREST! America's community newspapers are the BACK bone of a FREE MEDIA. Los Cerritos Community Newspaper can be found at www.loscerritosnews.net. Investigative Reporting is becoming a "lost art" here in the United States. Randy Economy and Brian Hews are determined to "keep politicians" on their toes and accountable.
Wednesday, December 29, 2010
CHARLES "CHUCK" DAVIS: Orange County Businessman Surrenders to FBI after being Indicted in $2.4 Million Investment Fraud Case. Released on bail. Are you a victim?
on 12/29/2010 11:23:00 AM
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LISTEN TO RANDY ECONOMY AND BRIAN HEWS ON KFI TALK RADIO
Los Cerritos Community Newspaper Publisher Brian Hews and Reporter Randy Economy were featured on KFI AM 640 on the Tim Conway Jr. Show on Thursday, October 17 to discuss the arrest of Los Angeles County Assessor John Noguez, Property Tax Agent Ramin Salari and Assessor Major Property Appraiser Mark McNeil on dozens of felony charges. The segment was broadcast live to millions of listeners throughout the Western United States. LCCN will post additional interviews by Mr. Hews and Mr. Economy in the future.
WATCH: LCCN, Randy Economy featured on Fox News
Los Angeles Local News, Weather, and Traffic Los Cerritos Community Newspaper’s exclusive groundbreaking coverage into the corruption probe at the Los Angeles County Assessor’s Office is now the focal point of a multi part series that began airing Wednesday night on Fox News 11 in Southern California. LCCN was the first media outlet to break the story about the massive criminal investigation that has now gripped the entire Los Angeles County Hall of Administration. “We thank Fox News for recognizing featuring Los Cerritos Community Newspaper in their coverage,” said Brian Hews, President and Publisher of Hews Media Group. “LCCN has been working with dozens of media outlets across the country on this massive scandal for the past eight months,” Hews said. Featured in this report is LCCN Investigative Reporter Randy Economy who tells about how the community newspaper was able to “piece the puzzle together” that has resulted in the arrest of one former property appraiser, and the recent departure of Assessor John Noguez on a “paid leave of absence.” Look for more segments on Fox News 11 during the next several days and weeks. Reporter Gina Silva is featured in this segment.
Randy Economy appears on NBC News Non Stop California with Colleen Williams
Randy Economy appears on California Non Stop with Colleen Williams from NBC News. Randy Economy appeared on NBC New's Non Stop California in June, 2012. This is what NBC said about Randy and Los Cerritos Community Newspaper. "Los Cerritos Community Newspaper recently published hundreds of e-mails between Los Angeles County Assessor John R. Noguez and several property tax agents. The emails were obtained by the newspaper through a series of public document requests. This is the second set of documents published by the community newspaper that has been at the forefront of reporting and exposing the alleged pay to play activities between tax agents and Noguez for the past two years. Reporter Randy Economy joins Colleen Williams on Nonstop News LA to discuss how their investigation began on June 25, 2012.”
Hear Randy Economy and Brian Hews on the David Cruz Show!
Hear Los Cerritos Community Newspaper Publisher Brian Hews and Reporter Randy Economy on The David Cruz Show during the week of June 25, 2012 on KTLK AM 1150 in Southern California. The segment begins at the 56:00 part in this clip and lasts for thirty minutes.
Brian Hews, Randy Economy on CBS 2 News KCAL 9 with Investigative Reporter Dave Bryan
Los Cerritos Community Newspaper featured CBS News with Investigative Reporter Dave Bryan CBS/KCAL Investigative Reporter Dave Bryan interviews Randy Economy and Brian Hews from Los Cerritos Community Newspaper the day more than 300 law enforcement officials raided 12 different locations in the political scandal that is consuming Los Angeles County. Thanks CBS News for acknowledging the hard work of LCCN!