Investment manager admits to $7M scheme

NAPLES — Investment manager Dorian Garcia pleaded guilty to wire fraud in a scheme that involved nearly 100 investors and $7 million, according to a statement from the U.S. Attorney's office.

Garcia, 30, of Naples, faces up to 20 years in prison and will have to pay back $3.1 million to investors. A sentencing date has not been set yet.

From February 2009 through April, Garcia solicited and received at least $7.3 million from 96 investors nationwide. Of that amount, he has repaid about $4 million, according to the statement.

Through his companies, including DG Wealth Management, authorities allege Garcia persuaded individuals to invest with him based on misrepresentations that he would invest their funds in a pool and would guarantee their initial investment, as well as a specific rate of return over a defined period of time. Garcia provided investors with fake bank statements that reflected large balances, the statement says.

But Garcia only invested a small portion of the investor funds, using larger portions to return money to some investors and for personal expenses including artwork, luxury car payments and dinner parties, prosecutors contend.