GLENWOOD SPRINGS, Colorado - Craig Davis, accused of bilking more than $1.9 million from dozens of investors, agreed on Thursday to plead guilty to two counts of theft in return for dismissal of the remaining charges of theft and securities fraud.
Davis, 62, of Silt, pleaded guilty to counts one and five, involving the theft of nearly $665,000 from two investors, according to court documents.
As part of the deal, according to defense attorney Charles McCrory, it is recommended that Davis receive no more than 10 years in prison.
Judge Denise Lynch, while discussing the plea bargain with McCrory and Davis, noted that if Davis had been convicted by a jury on all 16 counts, he might have faced up to 12 years in prison per count.
According to court documents, Davis was president and founder of the Americor Funding Corp., set up in 1993 as a local investment brokerage house for land development projects.
Through a complicated financial scheme, Davis would take in money from investors in this area and elsewhere, and combine it to provide funding for construction projects.
Repayment by contractors working on the projects, once the projects were finished, seemed to be working out, initially giving investors returns of 10 to 12 percent, according to court documents.
But in 2007, according to prosecutors, Davis started diverting Americor funds for his own purposes rather than paying back his investors.
Irate investors started contacting authorities in 2008, leading to an investigation and Davis's arrest in December 2011 on eight counts of theft and eight counts of securities fraud.
He has been held in jail on a $160,000 bond since his arrest.
Davis is due in court for sentencing on Feb. 7.