A Corvallis man has pleaded guilty in U.S. District Court of defrauding victims out of $350,000 in an investment scheme. Federal agents also seized a helicopter, recreational vehicle and a bank account in the case of Forrest Neil, 63.

From May 2000 through April 2001, Neil approached investors and told them he could earn them high rates of return in a secret high-yield debenture-trading program, according to the U.S. Attorney's Office.

Neil told clients they would receive a 20 percent return on their investment for 40 weeks and the funds would never be at risk because the trading program was conducted through the Federal Reserve.

Neil was in the process of raising $1 million for the bogus investment scheme, officials said. After investors transferred $350,000 into his Oregon bank account, Neil bought a helicopter and the RV.

When the investors failed to receive the promised returns, they demanded refunds. They later contacted authorities.

In May 2001, federal agents obtained and served warrants on Neil. Some money still deposited in the account is being returned to the victims.

Neil pleaded guilty to four felony charges - two counts of wire fraud, one count of mail fraud and one count of failing to file a U.S. income tax return. He faces up to 16 years in federal prison, mandatory restitution and a fine up to $850,000. He will be sentenced May 7.

The FBI and IRS conducted the investigation the led to Neil being prosecuted.