(Baton Rouge-AP) -- Two Baton Rouge men have pleaded guilty to organizing a fake investment scheme that netted them between $1,500,000 and $5,000,000. Clarence Wayne Cook and Brian E- Causey admitted they promised people who invested in two companies, Cayman South International and Haven Quest, 500 percent to 900 percent returns.
Cook and Causey each admitted to one count of wire fraud and one count of willfully making a false tax return. The pair admitted to bilking at least 124 investors between August 1997 and January 1998 through the fake trading programs.
Thirty-four investors paid $556,000 into the Cayman South scheme and at least 90 people paid a total of $2,600,000 into the other program. U.S. District Judge Ralph Tyson of Baton Rouge allowed the men to remain free on bail until sentencing.