Indiana man pleads guilty to $300K investment fraud

SOUTH BEND — An Elkhart man has admitted he defrauded investors of more than $300,000 in a years-long scheme.

Charles Ray Smith, 51, pleaded guilty to one count of wire fraud in U.S. District Court of Northern Indiana on Monday. He admitted that between 2016 and 2021 he fraudulently obtained $315,020 through fraudulent investment opportunities.

He said in his plea that he claimed to have made millions of dollars through real estate investments and that he knew of other opportunities with the promise of large returns. Smith said he took money from investors but put it to his own personal use.

Meanwhile, he deceived his victims by claiming their investments were handled by a company called Chicago Investment Group and by sending text messages that made their investments look legitimate.

Prosecutors had additionally alleged that Smith threatened to have the victims killed after they complained to law enforcement.

Smith entered his plea ahead of a jury trial set for Jan. 31.

He acknowledges in his plea agreement that the charge he admitted to carries prison time of up to 20 years and a fine of $250,000. However, as a term of the agreement, prosecutors will recommend a reduction in the level of his offense.

He also agreed to make restitution of between $3,020 and $199,000 to the four victims who together lost $315,020.

Six other counts against Smith will be dismissed.

A judge accepted Smith's plea and set sentencing for May 11.