SAN DIEGO (AP) - A San Diego businesswoman who authorities say ran a $400 million investment fraud scheme involving liquor licenses pleaded guilty Wednesday to federal charges.
Gina Champion-Cain entered pleas to conspiracy, securities fraud and obstruction of justice. She could face up to 15 years in prison when she is sentenced in October.
Champion-Cain was accused of bilking more than 100 investors around the United States out of millions that she claimed would be used for high-interest loans to people seeking California liquor licenses.
Instead, she used some $60 million to prop up her other troubled businesses, including restaurants and a surf-themed clothing store, paid back early investors with money from later ones in a classic Ponzi scheme and spent large sums on her salary and a luxury lifestyle that included buying jewelry, cars, homes and box seats at San Diego Padres and Chargers games, according to her plea agreement.
None of the money was used for the alleged loans.
The scheme took in some $400 million and the plea agreement says the investors may have lost $65 million to $150 million.
Crispin Torres, the former chief financial officer of a Champion-Cain company called American National Investments, also entered a guilty plea Wednesday to a charge of conspiracy.
Please read our comment policy before commenting.