CLEVELAND: A Summit County man accused of defrauding people out of $1.8 million in an investment scheme has pleaded guilty on 14 counts in federal court.
Prosecutors say 34-year-old Anthony Davian of Copley pleaded guilty Tuesday to one count of securities fraud, two counts of mail fraud, four counts of wire fraud and seven counts of money laundering.
Defense attorney Paul Adamson says Davian intends to do his best to pay full restitution. Adamson says Davian had good intentions but made some mistakes.
Davian will be sentenced July 2. He was released after posting a $25,000 unsecured bond, according to court documents. He also was required to submit to court supervision and undergo a psychiatric/mental health evaluation and/or counseling as directed by the court.
Prosecutors say Davian promoted and sold securities to at least 20 investors in several states between 2008 and 2013 through his hedge fund, Davian Capital Advisers LLC. Prosecutors say Davian misrepresented information about his business.
They called Davian Capital his “personal piggy bank” and said he used client money to buy a $41,600 Audi Q7 luxury car, a luxury home and for other personal expenses.
Davian had offices at 4650 Streetsboro Road in Richfield. Those offices closed last August.
Davian used social media, particularly Twitter but also Facebook and YouTube, to promote himself and his funds that included Davian Capital, Rubber City Gravity, Rubber City Pure Alpha, Cleveland Precious Metals Fund, and Cleveland Pure Alpha. He falsely claimed that the funds had rates of return as high as 27 percent, according to court documents.
He also published a newsletter, The Davian Letter, which charged $69 to $99 a month for a subscription.
Davian claimed to manage hundreds of millions of dollars but received far less than that — about $2 million — from clients, prosecutors said. He filed paperwork in 2008 with the Securities and Exchange Commission indicating he intended to raise as much as $250 million to start up a hedge fund.
The nonprofit Southern Investigative Reporting Foundation last year published an online story about Davian saying in part that Davian’s hedge fund “had come to a standstill after being besieged by fraud allegations from all directions” and that investors “suffered sharp losses.”