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Va. man accused of bilking investors pleads guilty

Thursday - 2/27/2014, 2:01pm  ET

RADFORD, Va. (AP) -- A Virginia man accused of bilking investors has pleaded guilty to federal fraud charges.

U.S. Attorney Timothy J. Heaphy says 63-year-old Charles G. Shomo of Radford entered guilty pleas on Thursday to mail fraud, securities fraud and money laundering. There was no plea agreement.

Heaphy says Shomo bilked more than $620,000 from more than 30 investors in western Virginia between March 2010 and June 2013. Most of the victims were elderly.

Investors in Shomo's company, P&G Enterprises, were offered promissory notes that typically matured over a one-year period.

According to the indictment, Shomo used investor funds for personal expenses and to help fund an unrelated business. He also paid off existing promissory notes with new investors' money.

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