HOUSTON (AP) — Federal prosecutors say a Houston businessman has been indicted in a $32 million investment scheme linked to a software development company he founded.
Officials say 62-year-old Ray Charles Davis was arrested Thursday. Davis was indicted Dec. 7 on one count of securities fraud and 20 counts of wire fraud.
The indictment says Davis made false statements to investors regarding the financial condition of Behavioral Recognition Systems Inc. Authorities estimate investors were defrauded out of $32 million.
Prosecutors say Davis also embezzled $11 million from the company.
Davis, if convicted on all counts, faces a maximum 420 years in prison.
His defense attorney, Dick DeGuerin of Houston, said his client is not guilty and the charges are greatly exaggerated.