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A Knoxville loan officer pleaded guilty in federal court to wire fraud in connection with a Benchmark Capital investment scheme.

Paulynn Wright, 42, faces up to 20 years in prison and must pay restitution.

Back in 2012, a federal indictment filed against Benchmark Capital said the company tricked investors into putting their retirement savings and home equity into fake annuity investments. The investors lost more than $18 million.

In her plea, Wright admitted she and three co-workers gave false information to a lender to secure a mortgage loan.

Wright's co-defendants are still awaiting trial. Her sentencing is set for December.

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