Carlsbad

The former president of a North County investment firm pleaded guilty Tuesday to federal charges stemming from a Ponzi scheme that cost investors more than $2.4 million.

James Earl Davis, 40, of Carlsbad was charged with two counts of mail fraud after FBI agents raided the offices of his Independent Planners Network July 28. The agents also raided a separate office maintained by Davis in La Jolla.

Davis told clients that he was investing their money in annuities issued by a life insurance company, but instead used it to pay off previous investors, according to Assistant U.S. Atty. Charles F. Gorder Jr.

From 1983 to July, 1988, Davis collected about $3.58 million from the investors. His operation was shut down the day the offices were raided, Gorder said. In all, about 100 investors lost money and at least one lost as much as $100,000, he said.

Davis, who faces maximum penalties of 10 years in prison and a $500,000 fine, is to be sentenced Dec. 12 by U.S. District Judge Earl B. Gilliam.