On July 12, Jay Bruce Heimburger, 58, pled guilty in Dallas federal court to one count of mail fraud for his role in an alleged diamond investment fraud scheme.
He faces 20 years in prison and a $250,000 fine.
Codefendant Christopher Arnold Jiongo, 56, pleaded guilty in May to one charge of wire fraud. Another, Craig Allen Otteson, 65, is scheduled to plead guilty today.
The case stems from the bankruptcy of Worldwide Diamond, a Dallas diamond company that filed for bankruptcy in October 2013. Heimburger was its principal partner.
The company sold $50,000 diamond notes as investment vehicles, according to a government statement. But the indictment charges that the company deceived investors by not actually buying diamonds with the money.
The indictment alleges that Heimburger and Otteson caused over $6.4 million to be fraudulently collected from 77 investors.
(Image from Wikipedia)