Naples Man Pleads Guilty to $7 Million Investment Scheme
FORT MYERS, FL—United States Attorney A. Lee Bentley, III announces that Dorian Garcia (30, Naples) today pleaded guilty to wire fraud for operating an investment scheme involving nearly 100 victims who invested more than $7 million. Garcia faces a maximum penalty of 20 years in federal prison, and he will be required to pay restitution in the amount of $3,108,734.52, representing losses to victims as a result of his scheme. A sentencing date has not yet been set.
According to the plea agreement, between February 2009 and April 2015, Garcia solicited and received at least $7,348,620 from approximately 96 victims located throughout the United States. Of that amount, he has repaid approximately $3,990,285 to his victims. Garcia, through a number of companies that he controlled, including DG Wealth Management, persuaded individuals to invest with him. He induced these investors 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. In support of his representations that these investments were secured, Garcia provided investors with fake bank statements that reflected large balances. The true account balances were a fraction of the amounts claimed, and were insufficient to support the guarantees that he had promised.
Garcia invested only a small portion of the funds he received. After investors gave him money, he would send them false trading statements that reflected false earned trading profits. Garcia used a greater portion of the investors’ funds to repay other investors. He also used a significant portion of the funds for personal and business expenses, including artwork, rent, luxury car payments, domestic help (including a personal chef), jewelry, and dinner parties.
When investors began asking for their money back, Garcia provided a series of misrepresentations as to why he could not return their money, often insisting that they sign new agreements falsely appearing to convert their investments into loans. In addition, Garcia encouraged investors to mislead others, including investigators, about the true nature of their investments with him. He encouraged his investors to falsely claim that they had made a loan to his companies when, in fact, they had provided Garcia money to invest on their behalf.
Pursuant to the plea agreement, Garcia will forfeit to the United States five pieces of artwork that were purchased with fraud proceeds. In addition, he will also forfeit a $10,000 retainer that he paid to a law firm using fraud proceeds and will be liable for a forfeiture money judgment in the amount of the proceeds he obtained from the offense.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Commodities Futures Trading Commission and the State of Florida, Office of Financial Regulation. It is being prosecuted by Assistant United States Attorney David G. Lazarus.