Associated Press, Published May 21 2010
Minnesota man pleads guilty to scamming investors out of $8 millionST. PAUL (AP) — A Minnesota man has pleaded guilty in federal court to defrauding investors out of about $8 million.
The U.S. Attorney's Office says 65-year-old David Hugh McCaffrey of Wayzata admitted that he conspired to defraud the Carlton Financial Corporation investment group and others out of money by creating false documents for projects that were never done.
McCaffrey was CEO of the ConServe Corp., which provided electricity submetering services to apartment complexes. Prosecutors say investors would provide financing for phony ConServe installation projects.
McCaffrey pleaded guilty Thursday to conspiracy to commit wire fraud and one count of tax evasion. Each charge carries a maximum of 5 years in prison. A sentencing date has not been set.
McCaffrey did not immediately return a call seeking comment.
Copyright 2010 The Associated Press.