An American resident has pleaded guilty to committing a $9 million investment fraud through offshore structures in Nevis and a bank account in Bermuda.Larry Michael Parrish of Maryland admitted one count of wire fraud in a plea agreement that was filed at federal court in Baltimore.The newsletter Offshore Alert reported that in return for Parrish's guilty plea, prosecutors agreed to dismiss the remaining 22 counts of fraud and two counts of money laundering against him and not to seek a prison-term of more than 11 years at sentencing, which is scheduled for November 15.Parrish was charged in what was basically a Ponzi scheme.Offshore Alert reported today: “Approximately $9.2 million of investors' funds were placed with Parrish and his Nevis-domiciled company IV Capital Ltd. between February, 2006 and October, 2009, according to prosecutors, who indicted Parrish on June 20, 2012. Several false representations were made to attract investments, including that IV Capital had at least $20 million under management, including investments from Parrish and his "partners"; was profitable, had several employees, and that all funds would be held in an escrow account and used solely to secure a line of credit from a financial institution, it was alleged in the indictment.“In reality, Parrish had no partners, had not invested any of his own funds, IV Capital was unprofitable, had no employees other than Parrish, and funds were diverted to an offshore bank account, it was claimed ...“IV Capital was set up and administered by Global Management & Consultancy Corporation Ltd., a Nevis-based trust and management firm operated by local attorney K. Gregory Hardtman, and funds from the scheme went into a bank account in the name of GM&CC at Bermuda Commercial Bank, in Bermuda, stated prosecutors.”Of the $9.2 million raised from investors, $5.2 million was used to pay investors under the guise of "profits" at a purported return of approximately 2.5 percent per month, $2.94 million was lost in trading, and $1.05 was converted by Parrish for his personal use, Offshore Alert said it was claimed.