Money manager pleads guilty

NAPLES — Naples money manager Blayne Davis could face as long as 20 years in prison after pleading guilty to wire fraud in connection with an investment-fraud scheme.

Davis was the director of trading for Capital Blu Management, a firm founded in 2007 that offered money management and investment services in foreign exchange trading, according to a statement by the U.S. Department of Justice.

In 2008, the firm's operations were suspended after investors lost $11 million even as Capital Blu reported positive returns. In addition, federal prosecutors alleged that Capital Blu diverted funds to pay for the firm's operational expenses such as salaries and the use of an airplane.

Davis has agreed to cooperate in the ongoing investigation, prosecutors say. A co-defendant, Donovan Davis, Jr., 33, of Palm Bay, pleaded not guilty and is awaiting trial in the case (he is not related to Blayne Davis.) A third defendant, Damien Bromfield, 37, of Ocoee, pleaded guilty on Nov. 14 to conspiracy to commit wire fraud and is awaiting sentencing.