COLUMBIA, S.C. -- The head of a small South Carolina investment firm pleaded guilty Wednesday to bilking dozens of people out of about $6 million.

U.S. Attorney Walt Wilkins said Daryl Batts, 46, pleaded guilty Wednesday to one count each of securities fraud and mail fraud.

According to Batts' attorney, Frank Eppes, Batts "pleaded guilty to an information," which means that he waived his right to a grand jury hearing and a formal indictment.

David Stephens, assistant U.S. Attorney in charge of the case, said, "I think he simply recognized that he was caught. We had the evidence. A conviction was inevitable -- that it was to his benefit to cooperate with us and plead guilty as rapidly as possible."

"We don't know who all the victims are,” Stephens said. “We're hoping that some victims will identify themselves to us."

"He, in fact, had legitimate clients who were not victims,” Stephens said. “But we need to hear from everyone to get it straightened out."

Batts owned and operated Comprehensive Financial Solutions Inc. in Easley, which closed its doors earlier this month, leaving customers wondering what happened to their money.

Wilkins said investigators believe about 150 people invested about $6 million with Batts' firm and that Batts used money from his investors for himself instead of investing it.

Wilkins said that this was a "classic Ponzi scheme" where Batts took in money from investors for almost six years, during which time he never invested any of the money, but simply diverted it to his own uses.

Investigators said that Batts was able to keep the investors from realizing their money was being stolen by providing them with bogus monthly statements showing large profits.

Wilkins said that if an investor wanted some of his "profits," or return of his principal, Batts would simply use funds from new investors to keep old investors fooled.

Besides his reputation for making profitable investments, those who know him say Batts himself was an advertisement for making money. Friends say he always had the best of everything, from the finest cars to the finest clothing.

Recovering Assets

Bruce Byrholdt, the court-appointed attorney in charge of CFS and in charge of finding assets to distribute to investors, said as of Thursday afternoon, he has recovered $2.5 million for an account set up for the investors of CFS.

Some of that money has come from vehicles -- a Lexus and an Escalade -- that were sold off. And $475,000 in cash.

Byrholdt said he hopes to deposit another $250,000 to $300,000 Friday..

Byrholdt says "nothing is off-limits" -- even clothing -- when it comes to liquidating Batts' assets. That includes the BMW and Jeep Wrangler his family is still using, along with home furnishings and jewelry.

The gated golf community requires a $35,000 to $40,000 initiation fee. The monthly dues are $500. Golf Pro Beau Bowden says Batts hired him to give informal golf lessons to CFS clients. Bowden says Batts would pay him $150 per class.

"He was paying me with my own money," Bowden told WYFF's Myra Ruiz. Bowden invested $85,000 with CFS about two years ago.

“I'm glad I didn't encourage any members to invest with Daryl," said Bowden. "Not only have I lost money, but I've lost trust in someone I considered a friend until now. I feel like a fool. I feel like I've been taken advantage of. It's a dirty feeling."

An employee at Rush Wilson, an upscale men's clothing store in downtown Greenville, said Batts was an "extremely good customer" with "a high taste level." He declined to give his name or further comments.

Batts' Easley home is located in the Smithfield Golf Course neighborhood. He also had a home at the Reserve on Lake Keowee.

According to an Easley furniture store, Batts bought more than $100,000 in furnishings from the store.

"There's a home at the Reserve on Lake Keowee,” Byrholdt said. “We're making progress with trying to have that listed with a realtor so we can try to recoup as much money as possible. There're automobiles that have been sold recently. The money has been placed in the account. We're going to find out any assets that are out there and try to recover them."

"We've just got to identify what the investments were, where the money went and to whom the money went to," Byrholdt said.

Byrholdt has established a toll free telephone line for investors to call and report and receive information about the case. That number is 866-435-7500, and it will be manned from 8:30 a.m. until 5 p.m. After hours, a message may be left on extension 13.

The FBI started its investigation two months ago. Four weeks ago, Mass Mutual notified the U.S. Attorney’s Office about what had been discovered in an internal investigation by that company.

Batts faces up to 50 years in prison and a $500,000 fine. He will be sentenced later, Wilkins said.

In the past week, the South Carolina Attorney General's office said it was also investigating CFS and Batts.

Last month, Batts was stripped of his affiliation last Mass Mutual, a national retirement, investment and insurance company. Eppes said that Batts sold insurance products issued by the company.

Stephens said, "We believe that there is no reason to think that there's any sort of criminal liability on the part of Mass Mutual as far as their involvement. However, it's not my place to comment on the possible civil liabilities to the victims in this case."