|Updated: 3/15/2012 10:15 pm
||Published: 3/15/2012 9:44 pm
LITTLE ROCK, AR - A Little Rock man who defrauded investors out of more than $700,000 pleaded guilty to mail fraud Thursday. One of his victims, the wife of a solider who died in Iraq, lost nearly all of the death benefit she received.
The Department of Justice says that another woman also gave life insurance she received after her husband died to Lee Charles Johnson. Less than $2,000 of those funds have been refunded to the women.
Johnson, according to the DOJ, sold securities and other investments to 46 couples, individuals, and entities despite not being licensed to do so. At his plea hearing, Johnson admitted to taking investments, guaranteeing healthy returns, then using the money to pay for his child's private school, trips, vehicles, and other cash expenditures. Johnson also mailed false maturity date letters stating their investments were doing well.
Johnson faces up to 20 years in prison and a fine up to $250,000. He is currently free on his own recognizance awaiting a sentencing date.