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.

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