Businessman Pleads Guilty to Wire Fraud

A former Irvine businessman pleaded guilty Monday to federal charges that he bilked hundreds of small investors out of $3.5 million in an Orange County boiler-room scam, authorities said.

Daryl Goodwin, 57, pleaded guilty to two counts of wire fraud in connection with his operation of Bannister-Brighton Ltd., a bankrupt Orange County boiler room that purported to sell precious metals and gold coins over the telephone.

Goodwin systematically bilked hundreds of customers throughout the nation by promising that their funds would be used to invest in precious metals or gold coins, then diverting the money to pay salaries, sales commissions, office expenses and another set of investors from an extensive scheme, Assistant U.S. Atty. David Sklansky said.

“The company took in approximately $3.5 million from close to 700 victims nationwide, and returned less than $850,000 to about 80 of its customers,” Sklansky said.

Bannister-Brighton was declared bankrupt in November, 1986. Goodwin, who has since moved to Portland, Ore., is scheduled to be sentenced Sept. 16. The maximum sentence for the two charges is 10 years in prison and a fine of $250,000 plus restitution costs.