CPA convicted for role in $40 million Ponzi scheme

  • Posted: Tuesday, February 12, 2013 1:28 a.m.
    UPDATED: Tuesday, February 12, 2013 1:43 a.m.

CPA convicted for role in $40 million Ponzi scheme

CHARLOTTE (AP) — An accountant has been convicted for his role in a $40 million Ponzi scheme that defrauded investors in North Carolina, Virginia and Ohio.


A federal jury in Charlotte convicted Jonathan D. Davey of Newark, Ohio, on four counts of investment fraud conspiracy and tax evasion. Prosecutors say Davey administered several hedge funds in the Black Diamond Ponzi scheme, soliciting more than $11 million from victims in the case.

The 48-year-old accountant, who was convicted Friday, is the 11th defendant convicted in the 2007 fraud, which prosecutors say deprived about 400 victims of more than $40 million. Prosecutors say Davey used a shell company in Belize to funnel money toward construction of his mansion in Ohio.

Davey faces a maximum sentence of 50 years in prison and $1 million in fines.

Notice about comments:

Salisburypost.com is pleased to offer readers the ability to comment on stories. We expect our readers to engage in lively, yet civil discourse. Salisburypost.com cannot promise that readers will not occasionally find offensive or inaccurate comments posted in the comments area. Responsibility for the statements posted lies with the person submitting the comment, not Salisburypost.com. If you find a comment that is objectionable, please click "report abuse" and we will review it for possible removal. Please be reminded, however, that in accordance with our Terms of Use and federal law, we are under no obligation to remove any third party comments posted on our website. Full terms and conditions can be read here.

Do not post the following:

  • Potentially libelous statements or damaging innuendo.
  • Obscene, explicit, or racist language.
  • Personal attacks, insults or threats.
  • The use of another person's real name to disguise your identity.
  • Comments unrelated to the story.