Newport man, 64, pleads guilty to fraud, laundering

A Newport Beach man accused in a Ponzi scheme pleaded guilty to all charges Friday, according to federal prosecutors.

John Carl Willy, 64, pleaded guilty to two counts of wire fraud and one count of money laundering, Assistant U.S. Atty. Douglas McCormick said.

Willy had initially pleaded not guilty at his arraignment, but changed his plea Friday afternoon before the federal judge.

McCormick stated most defendants plead not guilty in front of the magistrate judge before heading to federal court.

Willy faces a sentence of 50 years, but McCormick expects a sentence closer to four or five years due to sentencing guidelines.

Willy’s sentencing is set for May 19.

Willy used a Ponzi scheme to run a phony investment business in which he scammed investors out of about $4.2 million, prosecutors said. Willy used the money to finance his operation, a home in Newport Coast and high-end automobiles, prosecutors said.

— Daniel Tedford