Donald Manning, who was president of an investment operation called the Brixon Group, described as a Ponzi scheme by federal prosecutors, pleaded guilty to conspiracy and wire fraud charges in U.S. District Court Jan. 16 before U.S. District Judge Barry Ted Moskowitz.
Manning, 71, along with co-conspirators Joseph McCool and Cameron Campbell, recruited retirees from around the country and members of his own family to invest millions of dollars in the Brixon Group, which allegedly provided guaranteed returns through risk-free investments, prosecutors said.
In addition, Manning told investors part of their money would go toward humanitarian efforts overseas and that McCool was a banking expert who had managed a large private trust in Europe, prosecutors said in court documents.
In fact, Manning admitted in his plea that most of the money invested in Brixon, which was based in Arizona, was not placed in investments and that new funds from investors were used to make payments to earlier investors, and that he and his partners converted most of the investments to their own personal use, prosecutors said.
Campbell, a La Jolla attorney, previously pleaded guilty and is now serving a five-year and one month sentence in federal prison. Law enforcement is searching for McCool, prosecutors said.
Manning is scheduled to be sentenced April 15.
, Mike Allen
