Feds: Iowa man to plead guilty to investment scam

Published On: Jan 16 2012 10:51:04 AM CST  Updated On: Jan 16 2012 10:49:48 AM CST

IOWA CITY, Iowa (AP) -- An Iowa man charged with duping investors out of more than $800,000 by convincing them to sink money into phony mining and gambling ventures is expected to plead guilty to wire fraud and making false statements to the U.S. Probation Office.

In a court filing, a prosecutor says Donald Washburn of Cedar Rapids will enter the guilty pleas during a hearing in federal court Tuesday.

Investigators say Washburn duped an investor from Wisconsin out of $496,000 by convincing him to invest in a dice game he claimed he was developing to sell to casinos. They say Washburn convinced others to give more than $300,000 for phony gold and iron mining deals.

Prosecutors say Washburn didn't disclose that he'd already been convicted of fraud related to investments in a dice game.

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