MIAMI - A Boca Raton man accused of running a network of businesses built on lies pleaded guilty Friday to a mail fraud charge arising from an undercover FBI operation.
Edward Laborio, the founder of Envit Capital Group, admitted to participating in a "pay-to-play scheme" in which he offered illegal kickbacks to someone he believed was the manager of a pension fund, according to court documents. It turned out to be a FBI sting targeting small business owners willing to engage in shady stock trading practices.
Laborio's plea in Miami federal court came as he faces charges in Boston that he defrauded investors of Envit Capital Group and business entities associated with Envit. In addition, the U.S. Securities and Exchange Commission (SEC) is suing him, accusing him of duping investors into buying more than $5.7 million of stock in his companies.
The SEC alleges Laborio, 33, used investors' funds to cut $340,000 in checks to himself, spend $100,000 at casinos and cover personal expenses such as video store rentals, restaurant meals and pharmacy bills, court records show.
