LOS ANGELES — The former president of a Los Angeles brokerage firm has pleaded guilty to federal charges stemming from a real estate scam that cost investors nearly $4 million.
Prosecutors say 54-year-old David Williams of Los Angeles directed workers at Morgan Peabody Inc. to sell securities in a fund he created, purportedly to invest in real estate.
However, Williams said in a plea agreement Monday that he used the majority of investor's money to pay for personal expenses, including a lease on a $6 million home.
The guilty plea came in the midst of a jury trial on three counts of wire fraud and two counts of tax evasion.
Williams will be sentenced in September and faces up to 70 years in federal prison.