Posted on Tuesday, 07.20.10 The Associated Press
PHILADELPHIA -- A former suburban Philadelphia investment manager has pleaded guilty in a $25 million fraud case.
Thirty-eight-year-old Donald Anthony Young pleaded guilty in federal court Tuesday to one count of mail fraud and one count of money laundering. He will be sentenced Oct. 28.
Young's Kennett Square investment firm, Acorn Capital Management, was shut down by an April 2009 civil lawsuit by the federal Securities and Exchange Commission.
Prosecutors said Young obtained more than $95 million from investors, telling them that he would invest their money in the stocks of large and stable companies. But prosecutors say he diverted more than $25 million for his own use, including buying luxury homes for himself in Pennsylvania, Florida and Maine.
Young, who now lives in West Palm Beach, Fla., declined comment after Tuesday's hearing.