- Associated Press - Tuesday, May 5, 2015

LOS ANGELES (AP) - 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.

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