Irvine Man Indicted for Childhood Obesity Infomercial Scam

Charles Davis, 53, of Irvine has been indicted on federal charges that he bilked 40 investors of $2.4 million through an infomercial scam for a product aimed at fighting childhood obesity, according to an announcement from the U.S. Attorney’s Office in Los Angeles.

Davis pleaded not guilty to 10 counts of allegedly operating “an investment scam,” that, the announcement said, involved Newport Beach-based LifeRight Holdings, Inc. If convicted on all counts, he faces a maximum of 170 years in prison.

“According to promises made by Davis,” said the announcement about the FBI investigation, “LifeRight was going to develop and use infomercials to market a product to combat child obesity.”

Investors were supposed to receive interest on their investments plus royalties on products sold. He also said they had the option to convert their investment into shares of LifeRight stock when the company began selling the product.

Instead, Davis allegedly used investor funds for personal expenses, including payments to himself, family members, and girlfriends; clothing, jewelry, and other consumer items; rent, utilities and credit card payments; and legal fees to lawyers representing Davis in lawsuits brought against him.

In addition to LifeRight Holdings, Davis owned, controlled or was affiliated with LifeRight Holdings International, Inc.; LifeRight Worldwide, Inc.; American Membership Systems, Inc.; Solomon Davis Financial Group, Inc.; Forward Area, Inc.; Arcane Communications, Inc.; CJ Davis, Inc.; and Hawk Management Group.

Davis was taken into custody at his home Monday and released on $160,000 bond, the news release said. The indictment accuses him of two counts of mail fraud, five counts of wire fraud and three counts of money laundering. Trial is set for Feb. 22.