SANTA ANA, Calif. (CN) - A former Tennessee Titans lineman pleaded guilty to federal fraud charges in a $5 million Ponzi scheme. Reed K. Diehl admitted he falsely claimed to be a banker and took money from investors by promising high rates of returns.
Diehl pleaded guilty to three counts of wire fraud and one count of money laundering. In the plea agreement, Diehl admitted that he falsely claimed to be a banker who made hard-money loans, and fraudulently collected deposits from people who wanted financing for projects in Mexico.
Diehl told investors he would pool their money with other investors' to make loans, but used new money to pay off old investors - the hallmark of a Ponzi scheme.
Diehl faces up to 20 years in prison for each count of wire fraud and 10 years for money laundering at his Sept. 28 sentencing.
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