Beaumont, Texas An attorney from Kansas faces up to 10 years in federal prison over a $2.5 million Ponzi investment scam in Texas.
Prosecutors say 62-year-old Clifford Roth of Leawood, Kan., pleaded guilty in Beaumont to interstate transportation of money taken by fraud.
No sentencing date was announced Monday for Roth, who remains free on bond.
Prosecutors say Roth in November 2007 traveled to Southeast Texas and solicited investors to purchase bank holding company stock. Roth falsely claimed the money would be used to purchase an Oklahoma bank, which would then open a branch office in Beaumont.
The FBI determined that the investor funds were used for Roth's personal expenses, plus paid previous investors in the Ponzi scheme.