NEW HAVEN, Conn. (AP) - The head of a yacht-sharing club that promised vacationers access to boats around the world has pleaded guilty to bilking his investors.
Federal prosecutors in Connecticut say 52-year-old Andrew Deme raised about $1.3 million from investors but gave nearly half that money to promoters who were tasked with attracting more investors. Prosecutors say the company didn’t have enough money left over to develop the business.
The Hour newspaper reports the company, Waters Club Holdings Inc., remained open as of Friday, listing a single yacht in its fleet.
Deme, a resident of Fort Lauderdale, Florida, pleaded guilty Thursday to a charge of conspiracy to commit mail and wire fraud. Sentencing is set for June 7.
Prosecutors say one Connecticut investor put $475,000 into the company.
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